f,.fl  t  *  AGRIC.  DEf 


WISCONSIN  STATE  BOARD  OP  FORESTRY 

E.  M.  GRIFFITH,  STATE  FORESTER 

vITH  THE 

FORKS!  SERVICE,  LI.  S.  DEPARTMENT  OE  AGRICULTURE 

HENRY  S.  GRAVES,  FORESTER 


THE  TAXATION  OF  FOREST  LANDS 
IN  WISCONSIN 


BY 

ALFRED  K.  CHITTENDEN,  Forest  Examiner 

AND 
HARRY  IRION,  Forest  Service 

SEPTEMBER,  1910 


DEMOCRAT  PR 


WISCONSIN  STATE  BOARD  OF  FORESTRY 

E.  M.  GRIFFITH,  STATE  FORESTER 
IN  COOPERATION  WITH  THE 

FOREST  SERVICE,  U.  S.  DEPARTMENT  OF  AGRICULTURE 

HENRY  S.  GRAVES,  FORESTER 


THE  TAXATION  OF  FOREST  LANDS 
IN  WISCONSIN 


,      BY 

ALFRED  K.  CHITTENDEN,  Forest  Examiner 
\  \ 

AND 
HARRY  IRION,  Forest  Service 


SEPTEMBER,  1910 


MADISON,  WIS. 
DEMOCEAT  PRINTING  Co.,  STATE  PRINTER 


c 


TABLE  OF  CONTENTS 


Page 

Introduction  5 

General  Description 9 

Character  of  Land  and  Timber 9 

Cut-over  Land  14 

Settlement  and  Agricultural  Development 15 

Annual  Cut  and  Importance  of  Lumber  Industry 18 

Jefferson   County    18 

Examples   of  Actual   Taxation 21 

Summary  of  Assessed  Values  Compared  with  Actual  Values 27 

Assessments  of  Timberland 27 

Assessments  of  Cut-over  Land 37 

Assessments   of  Farm   Land 391 

Methods  of  Assessing  Timberlands 42 

Views  of  Lumbermen  on  Taxation 44 

The  Attitude  Toward  Fire 50 

Tree  Belt  and  Forest  Plantation  Laws 53 

Tax  Laws  in  Other  States 56 

Probable  Returns  from  Forest  Investments 56 

Conclusions 61 

Recommendations 64 

Woodlots   64 

Private  Forests  Without  Limitation  as  to  Area 66 

What  the  State  Should  Do 68 

Appendix 70 

The  Economic  Problem  of  Forest  Taxation..  70 


273457 


THE  TAXATION  OF  FOREST  LANDS  IN 
WISCONSIN 


BY  ALFRED  K.  CHITTENDEN,  Forest  Examiner,  and  HARRY  IRION, 

Forest  Service. 


INTRODUCTION. 

On  the  initiative  of  the  Wisconsin  State  Board  of  Forestry,  the 
Forest  Service  of  the  United  States  Department  of  Agriculture 
in  April,  1910,  entered  into  a  co-operative  agreement  by  the  terms 
of  which  it  was  to  undertake  a  study  of  forest  conditions  in  the  State 
of  Wisconsin. 

The  main  purpose  of  the  study  was  to  determine  the  extent  of  the  bur- 
den now  carried  by  timberlands  as  a  result  of  the  present  methods  of 
taxation,  and  what  influence,  if  any,  such  methods  of  taxation  have 
or  will  have  on  the  practice  of  forestry  by  private  owners.  Especial 
thanks  are  due  the  Slate  Forester  and  also  the  State  Tax  Commis- 
sion for  the  valuable  assistance  given  throughout  the  course  of  the 
study. 

That  the  perpetuation  of  this  country's  forests,  and  their  manage- 
ment along  conservative  lines,  is  an  object  of  grave  concern  to  the 
nation  and  to  individual  states,  and  a  proper  subject  of  legislation, 
all  admit.  Nor  will  it  be  denied  by  those  having  a  proper  regard  for 
the  future,  that  the  time  has  arrived  when  affirmative  action  must 
be  taken  if  this  end  is  to  be  attained.  Every  day  of  delay  lessens  the 
chance  of  success. 

Forest  conservation  by  private  owners  depends  primarily  upon  one 
point :  Does  it  pay  ?  If  forestry  can  not  be  made  to  pay  without 
granting  it  special  favors  it  has  no  place  in  the  business  world  of 
today.  The  two  great  obstacles  to  the  practice  of  forestry  by  private 
owners  are  forest  fires  and  an  unjust  and  unequal  system  of  taxation. 
Without  proper  control  of  the  forest  fires  that  yearly  run  over  the 
cut-over  Tands,  no  private  owner  can  hold  his  cut-over  lands  for  a 


6  THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN. 

second  cut.  Without  a  fair  system  of  taxation  no  private  owner  can 
hold  his  cut-over  lands  and  give  them  adequate  fire  protection  in  order 
to  get  a  second  cut 'of  timber.  With  a  fair  system  of  taxation  owners 
of  timberland  will  be  better  able  to  protect  their  cut-over  lands  from 
fire,  and  could,  perhaps,  afford  to  hold  these  cut-over  lands  for  future 
timber  protection. 

A  study  of  forest  taxation  has  already  been  made  in  New  Hamp- 
shire, and  the. report  has  been  published  by  the  Forestry  Commission 
of  that  state  in  its  biennial  report  for  the  years  1907-1908,  but  up 
to  the  present  time  no  such  study  has  been  made  in  the  Lake  states. 
While  the  general  conclusions  reached  in  New  Hampshire  may  in  a 
way  be  applicable  to  other  states  and  regions,  they  can  not  be  applied 
in  toto.  Local  conditions  and  present  methods  of  taxation,  the  rela- 
tive area  of  forest  land,  the  rate  of  growth  of  the  forest,  as  well  as 
other  considerations,  must  be  taken  into  account.* 

Wisconsin  stands  fifth  in  the  list  of  timber-producing  states  of  the 
Union.  In  1907  it  was  fourth.  In  1908  it  ranked  second  in  the  pro- 
duction of  white  pine.  It  is  being  rapidly  drained  of  timber  by  lum- 
bering, but  timber  removed  in  this  way  is  converted  into  money  and 
brings  about  the  development  of  the  country.  Very  large  areas  in 
Wisconsin,  however,  are  being  stripped  of  timber  in  another  way — 
by  fire.  In  1908  an  area  of  1,209,432  acres  was  burned  over  by  1,435 
forest  fires.  No  small  portion  of  this  acreage  was  young-growth  pine, 
hemlock,  spruce,  and  hardwoods,  some  of  it  nearing  merchantable  size, 
while  the  proportion  of  mature  timber  burned  was  also  large.  It  is 
estimated  that  499,495,791  board  feet  of  merchantable  timber  were 
destroyed,  worth,  at  a  conservative  estimate,  $2,996,975.  The  value  of 
the  young  growth  destroyed  by  these  forest  fires  in  1908  is  estimated 
at  $6,047,060. 

Wisconsin  is  typical  of  the  great  region  around  the  Lakes.  The  north- 
ern part  of  the  state  is  largely  white  pine  land;  south  of  this  is  found 
a  wide  extent  of  hardwood  land;  and  the  southern  portion  of  the 
state  ranks  with  the  best  agricultural  land  in  the  United  States.  A 
study  of  forest  taxation  in  Wisconsin,  then,  will  be  applicable  to  a  wide 
territory,  and  the  conclusions  herein  reached  may  be  applied  to  a  ter- 
ritory larger  than  the  state  alone. 

The  study  was  confined  largely  to  the  northern  part  of  the  state. 
The  southern  pa£t  is  principally  farming  land,  and  the  value  of  the 
soil  for  farming  is  greater  than  it  could  possibly  be  for  timber  pro- 


*  See  Appendix,  p.  70. 


THE  TAXATION  OP  FOREST  LANDS  IN  WISCONSIN.  7 

duction.  Practically  all  of  the  timber  has  been  removed  from  the 
southern  counties,  and  there  remain  now  only  scattering  bodies  of 
timber  included  in  the  woodlots  of  the  various  farms.  The  northern 
part  of  the  state,  however,  contains  much  true  forest  soil — soil  that 
is  too  poor,  rocky,  or  sandy  to  ever  be  successfully  used  for  agricul- 
ture. In  many  of  the  intermediate  counties,  however,  the  soil  is  suit- 
able for  agriculture  and  will  undoubtedly  be  so  utilized  within  the 
next  few  decades.  But  the  country  is  comparatively  unsettled  as  yet, 
and  while  awaiting  the  coming  of  farmers  and  the  conversion  of  the 
land  into  farms,  it  can  and  should  be  used  for  the  production  of  tim- 
ber. This  applies  to  counties  such  as  Price  and  Rusk,  where  practically 
the  entire  county  contains  excellent  farming  soil,  but  where  settle- 
ment is  naturally  slow,  owing  to  the  difficulty  of  clearing  the  land  for 
agriculture.  In  these  counties  the  standing  timber  will  soon  be  ex- 
hausted, and  the  timberland  owners  are  now  offering  much  of  their 
land  for  sale  to  settlers.  There  are  extensive  areas  in  these  counties, 
however,  where  the  soil  is  too  rocky  and  poor  for  farming,  and  such 
areas  should  be  kept  in  timber  growth.  In  the  extreme  northern 
counties  where  the  soil  is  sandy  it  has  no  value  except  for  forest 
growth. 

The  general  conclusions  which  may  be  drawn  from  this  investiga- 
tion are: 

1.  The  actual  tax  burdens  imposed  on  forest  lands  of  the  same  value 
are  not  uniform  or  proportionate,  as  the  constitution  and  laws  of  the 
state  require,  either  as  between  the  different  counties  and  towns  or 
between  the  different  taxpayers  in  the  same  town. 

2.  The  burden  of  taxation  upon  cut-over  land  is  relatively  much 
higher  than  upon  timbered  land,  although  the  latter  is  better  able  to 
bear  the  heavier  burden  of  taxation. 

3.  The  burden  of  taxation  upon  farm  land  is  also  relatively  less 
than  that  upon  cut-over  land  in  the  same  towns,  although  its  actual 
value  is  far  greater.     The  ratio  of  the  assessed  to  the  true  value  ol 
farm  lands  is  practically  the  same  as  for  timbered  lands. 

4.  In  general,  the  laws  regarding  taxation  have  not  been  strictly 
enforced.     That  no  strong  objections  have  been  raised  to  the  taxes  on 
forest  land  by  timberland  owners  is  due  to  the  fact  that  timberlands 
have  in  the  past  been  greatly  underassessed,  and  while  the  tax  rates 
have  been  extremely  high  in  many  cases,  the  burden  of  taxation  upon 
the  timberland  is  just  beginning  to  be  felt. 

5.  In  the  search  for  revenue  to  meet  the  financial  necessities  of  the 


8  THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN. 

towns  a  strong  tendency  has  recently  developed  to  enforce  the  law 
more  rigidly,  and  valuations  have  in  many  cases  been  greatly  in- 
creased. This  increase  in  valuations  is  more  noticeable  upon  timbered 
land  than  upon  cut-over  or  farming  land.  The  cut-over  land  is  already 
being  assessed  at  practically  its  actual  value,  or  even  higher. 

6.  The  present  law,  granting  total  exemption  for  thirty  years  to 
farmers     who  have  planted  their  land  to  timber,  is  not  being  taken 
advantage  of  to  any  extent,  and  there  are  no  records  of  any  advan- 
tage having  been  taken  of  the  old  law,  now  repealed,  allowing  bounties 
to  farmers  who  planted  shelterbelts. 

7.  Owing  to  the  great  danger  from  forest  fires  in  the  state  of  Wis- 
consin, to  the  length  of  the  time  required  to  secure  returns  from  cut- 
over  lands  by  waiting  for  a  second  cut,  and  to  the  cost  of  protection 
in  the  meanwhile,  forest  management  is  not  a  particularly  tempting 
investment  for  timberland  owners,  especially  in  view  of  the  fact  that 
cut-over  land  can  be  sold  to  settlers  at  a  good  price.    For  this  reason, 
it  is  believed  that  the  state's  forest  policy  should  be  greatly  extended 
and  strengthened. 

8.  The  fire-patrol  system  at  present  in  force  in  Wisconsin,  while 
excellent  as  far  as  it  goes,  is  not  sufficient  to  successfully  contend  with 
forest  fires  during  any  particularly  bad  fire  season.     The  fire-patrol 
system  should,  therefore,  be  greatly  strengthened,  and  non-residents 
employed  as  firewardens  if  possible. 

The  work  upon  which  this  report  is  based  was  confined  principally 
to  the  northern  portion  of  the  state,  since  it  was  manifestly  impossible 
to  go  thoroughly  over  the  entire  area.  Moreover,  the  results  of  an 
investigation  in  every  county  would  not  have  yielded  any  more  com- 
plete or  reliable  data  on  the  tax  question  than  could  be  obtained  by  a 
selection  of  typical  counties.  As  has  been  already  stated  the  southern 
part  of  the  state  is  a  well-developed  farming  country,  and  the  ques- 
tion of  forest  taxation  has  little  bearing  there  except  in  its  applica- 
tion to  farm  woodlots.  For  this  purpose  one  southern  county,  con- 
sidered to  be  typical  of  many — Jefferson  county,  was  selected,  and  an 
examination  of  that  county  was  made  to  determine  the  effect,  if  any, 
of  the  present  tax  laws  on  woodlot  conditions.  For  the  rest  the  work 
was  confined  to  the  northern  part  of  the  state.  Certain  counties,  how- 
ever, such  as  Marathon,  are  well  settled,  and  there  are  large  areas  of 
prosperous  farms  throughout.  While  it  is  probably  true  that  a  large 
proportion  of  this  northern  region  contains  soil  suitable  for  agricul- 
ture or  that  dairy  farms  will  be  established,  yet  there  are  large  areas 


THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN.  9 

of  soil  too  poor  for  farming.     On  such  soil  timber  growth  will  always 
be  the  best  crop. 

For  the  purpose  of  this  study  ten  counties  considered  typical  of 
the  northern  part  of  the  state  were  selected  for  detailed  study.  These 
were  Bayfield,  Douglas,  Florence,  Forest,  Iron,  Marinette,  Price,  Rusk, 
Sawyer,  and  Vilas  counties.  While  all  the  information  possible  was 
collected  in  the  other  counties  of  the  state,  the  principal  work  was 
confined  to  these  ten  counties. 

GENERAL  DESCRIPTION. 

A  large  portion  of  the  land  in  every  one  of  these  counties  is  agri- 
cultural in  character,  and  in  time  will  doubtless  be  placed  under  cul- 
tivation. The  fact  that  this  report  calls  attention  to  the  existence  of 
non-agricultural  lands  in  a  county  should  not  be  considered  as  a  re- 
flection upon  the  agricultural  possibilities  of  such  county  as  a  whole. 
The  only  reason  for  doing  so  is  to  make  plain  the  importance  and  ne- 
cessity of  using  these  lands  for  the  purpose  for  which  they  are  best 
suited. 

It  is  a  first  principle  that  all  land  should  be  put  to  its  best  and 
most  profitable  use.  Eliminating  from  consideration  all  land  that  is 
non- agricultural  there  will  remain  an  abundance  of  land  in  this  region 
not  yet  improved  which  is  susceptible  of  cultivation.  To  illustrate, 
the  total  area  of  these  ten  northern  counties  is  6,548,195  acres.  In 
1908  there  were  only  73,732  acres  or  a  fraction  more  than  1.1  per 
cent  of  the  total  area  under  cultivation.  Assuming  that  fully  25  per 
cent  of  the  total  area  is  non-agricultural  in  character,  there  would 
still  be  left  for  agricultural  development  more  than  73  per  cent,  or 
approximately  4,800,000  acres. 

Character  of  Land  and  Timber. 

Bayfield,  the  northernmost  county,  has  large  areas  of  poor  sandy 
soil  not  suitable  for  farming.  A  belt  of  red  clay,  6  to  10  miles  wide, 
skirts  Lake  Superior.  This  belt  contained  originally  good  white  pine, 
with  a  light  mixture  of  scrubby  hardwoods  anfl  some  hemlock.  The 
southeastern  part  of  the  county  is  mostly  gravelly  clay  loam,  and  the 
forest  consists  of  mixed  pine,  hardwoods  and  hemlock.  The  central 
and  western  part  has  a  sandy  soil  covered  with  a  forest  growth  of 
jack  and  Norway  pine,  with  considerable  white  pine  in  places,  espe- 
cially the  town  of  Drummond.  The  county  is  very  nearly  cut  over. 


10  THE  TAXATION  OP  FOREST  LANDS  IN  WISCONSIN. 

Only  about  5  per  cent  of  the  original  stand  is  left.  The  remaining 
timber  is  situated  principally  in  the  towns  of  Mason  and  Drumrnond. 
The  first  will  probably  be  cut  out  in  four  or  five  years,  while  in  the 
latter,  operations  will  doubtless  continue  for  a  long  time. 

The  good  farming  soil  ils  very  scattered,  and  there  are  no  large 
tracts  of  it.  The  bulk  of  the  land  in  this  county  is  best  suited  for  forest 
growth.  Practically  every  acre  of  cut-over  land  has  been  more  or  less 
severely  burned  by  forest  fires,  and  the  young  growth  does  not  amount 
to  much,  because  it  is  seldom  able  to  reach  sufficient  size  to  withstand 
the  fires  before  it  is  burned  over. 

The  northern  third  of  Douglas  county  has  a  fairly  fertile  red  clay 
soil,  and  the  southern  part  is  very  sandy;  the  central  part  is  inter- 
mediate between  these  two.  Hardwood  timber  is  now  very  scarce ;  the 
best  stands  have  been  cut  out,  and  at  present  there  are  only  a  few 
portable  mills  cutting  hardwood  in  the  county.  Most  of  the  pine 
also  has  been  cut,  and  practically  all  that  is  left  is  situated  in  three 
townships  in  the  town  of  Summit.  In  all  there  is  probably  not  more 
than  100,000,000  feet,  and  this  is  being  rapidly  removed  and  sawed 
outside  of  the  county.  Very  large  areas  of  both  Norway  and  white 
pine  are  coming  back,  usually  under  a  stand  of  popple  and  birch.  Ex- 
tensive areas,  however,  are  barren  waste,  with  nothing  but  scrub  and 
inferior  species  occupying  the  ground.  The  present  supply  can  last 
only  about  three  or  four  years  more  at  the  present  rate  of  cutting. 

Probably  one-half  of  the  county  is  more  valuable  for  growing  timber 
than  for  any  other  purpose.  The  heavy  red  clay  of  the  north,  is  considered 
very  fertile,  and  should  make  fairly  good  farming  land.  Many  people 
insist  that  even  the  most  sandy  areas  in  the  southern  part  are  well 
adapted  to  hay  and  cattle  raising,  but  there  seems  little  doubt  that 
the  use  of  such  lands  for  timber  production  is  far  more  advisable. 

Much  of  the  eastern  part  of  Florence  county  is  somewhat  sand}, 
while  the  central  and  western  part  has  a  loam  typical  of  hardwood 
land.  Along  the  northern  edge  it  is  rocky  and  hilly,  and  in  the  north- 
western part  there  is  considerable  swamp  land.  Outside  of  the  two 
localities  last  mentioned  the  land  is  rolling  and  in  places  fairly  level. 
Practically  all  of  the  pine  has  been  cut  off.  At  present  about  40 
per  cent  of  the  county  is  timbered  with  hardwood  and  hemlock, 
most  of  which  is  found  in  the  two  western  tiers  of  townships.  The 
best  information  obtainable  would  indicate  that  there  remain  ap- 
proximately 490,000,000  feet  of  hardwoods  and  hemlock.  The  hard- 
woods consist  principally  of  maple,  birch  and  basswood,  with  very 


THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN.  11 

little  elm.  Just  how  long  the  present  stand  will  last  is  hard  to  de- 
termine. At  present  no  great  amount  of  cutting  is  going  on,  and  unless 
the  annual  cut  is  greatly  increased,  it  will  be  at  least  twenty-five  years 
before  the  county  is  entirely  cut  over.  There  is  a  considerable  amount 
of  land  in  this  county,  especially  in  the  eastern  part,  which  is  non- 
agricultural  in  character  and  which  can  be  best  adapted  to  timber 
growth. 

Most  of  the  cut-over  land  in  Forest  county  is  good  clay  loam,  well 
suited  to  agriculture,  and  farming  will  doubtless  become  of  increas- 
ing importance.  There  are  many  areas,  however,  on  which  farming 
is  out  of  the  question.  Probably  about  10  per  cent  of  the  total  area 
is  swamp,  and  perhaps  fully  as  much  is  suited  only  for  timber  growth 
because  of  its  rocky  and  hilly  or  sandy  nature.  The  northwestern 
quarter  of  the  county  s  is  made  up  largely  of  sandy  pine  lands,  and 
much  of  the  southwest  is  hilly  and  rocky.  This  is  one  of  the  best 
wooded  counties  in  the  state,  although  most  of  the  pine  has  long  since 
been  removed.  The  forests  in  the  southern  part  have  always  been 
largely  hardwoods  and  hemlock  with  scattering  pine.  There  are  some 
very  good  quality  hardwoods,  and  lumbering  is  extensive.  A  rough 
approximation  would  show  about  15  per  cent  of  the  area  to  be  swamps 
.and  lakes,  20  per  cent  cut-over,  principally  pine  removed,  and  about 
.65  per  cent  timbered.  The  remaining  timbered  area  will  probably 
.average  100,000  board  feet  per  "forty."  This  would  give  a  total 
stand  for  the  county  of  nearly  one  and  three-quarters  billion  feet.  If 
the  present  rate  of  cutting  is  continued  it  will  not  take  much  over 
fifteen  years  to  remove  all  of  the  merchantable  timber. 

The  southern  part  of  Iron  county  is  rather  level  with  a  sandy  soil, 
and  numerous  swamps.  The  central  part  is  clayey  and  inclined  to  be 
rolling  and  rocky,  while  the  northern  part  is  fairly  level  with  a  clay 
loam  soil,  gravelly  in  places.  Practically  all  the  pine  has  been  cut 
and  approximately  46  per  cent  of  the  hardwood  and  hemlock.  The 
remaining  hardwood  and  hemlock  is  estimated  at  about  one  billion 
board  feet,  and  will  run  from  3,000  to  5,000  board  feet  to  the  acre. 
The  predominant  species  are  hemlock,  birch,  maple  and  tamarack,  with 
scattering  basswood  and  elm.  This  timber  is  found  in  two  bodies,  the 
largest  of  which  comprises  the  south  half  of  T.  46,  R.  1  W.,  T.  45,  Rs. 
1  W.,  1,  2,  and  3  E. ;  T.  44,  R.  1.  W.,  and  Rs.  1,  2,  3,  and  4  E.; 
and  T.  43,  R.  1  E.  The  other  body  comprises  the  southern  tier  of  town- 
ships. 

Lumbering  operations  are  not  being  carried  on  very  extensively. 


12  THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN. 

"With  the  possible  exception  of  Florence  county  less  timber  is  being 
cut  than  in  any  of  the  other  ten  counties.  The  probable  length  of  time 
the  present  stand  will  last  can  not,  therefore,  be  determined  with  any 
degree  of  accuracy.  With  a  normal  amount  cut  it  should  certainly 
last  twenty  or  twenty-five  years.  But  if  the  present  rate  of  cutting 
is  continued  it  should  last  much  longer.  With  the  exception  of  the 
northern  part,  the  land  is  essentially  forest  land  and  probably  can 
never  be  adapted  to  any  use  other  than  that  of  growing  timber. 

Originally,  Marine tte  county  was  largely  covered  with  pine,  but  the 
greater  part  of  the  pine  has  been  cut  and  a  mixed  stand  of  hemlock 
and  hardwoods  is  left,  with  considerable  pine  in  some  places.  Wher- 
ever the  timber  has  been  cut  or  even  lightly  culled,  forest  fires  have 
run  through,  arid  as  the  result  the  greater  part  of  the  county  has  been 
burned  over.  Extensive  tracts  of  jack  pine  grow  in  the  central  and 
southwestern  part  of  the  county,  and  large  burned-over  areas  are 
everywhere.  There  are  extensive  areas  of  agricultural  land  in  this 
county. 

Price  county  is  a  typical  hardwood  county.  The  greater  part  of  the 
area  is  unquestionably  well  adapted  for  agricultural  uses,  being  a 
light  sandy  loam,  varying  to  a  heavier  clay,  or  to  a  sandy  soil  in 
different  sections.  As  in  most  of  the  northern  hardwood  counties, 
there  are  many  irregular  areas  of  poorly  drained  land  that  form  typical 
tamarack,  spruce  and  cedar  swamps,  many  of  which  will,  in  time,  be 
drained  and  successfully  farmed.  Probably  5  per  cent  of  the  total 
area  is  of  this  type,  and  about  the  same  proportion  is  so  sandy  and 
rock-strewn  that  a  great  many  years  will  elapse  before  complete  utili- 
zation of  such  lands  will  be  undertaken.  There  are  rather  large  areas 
in  the  southern  part  of  the  county,  where  the  topography  is  so  rough 
and  irregular  and  at  the  same  time  so  interspersed  with  swamps  that 
it  is  doubtful  whether  such  land  can  ever  be  profitably  farmed. 
Probably  10  to  20  per  cent  of  the  county  would  be  of  greater  produc- 
tive value  if  continued  under  timber  than  it  would  be  if  farmed  or 
pastured. 

The  timber  in  Price  county  is  typical  hardwood  or  hemlock -hard- 
wood growth,  though  there  are  occasional  small  stands  of  valuable 
white  pine,  and  not  infrequently  some  pine  is  found  in  mixture  with 
hemlock  and  hardwoods,  but  the  more  extensive  white  pine  formerly 
abundant  in  many  parts  of  the  county,  particularly  in  the  central 
part,  has  been  pretty  well  cleaned  out  for  the  past  ten  to  twenty  years. 
Most  of  the  hardwood  and  hemlock  has  also  been  removed  within  10-< 


THE  TAXATION  OP  FOREST  LANDS  IN  WISCONSIN.  13 

to  15  miles  of:  the  railroads.  Besides  the  hemlock  or  hardwoods  there 
is  considerable  timber  occurring  as  a  swamp  type,  consisting  chiefly 
of  tamarack,  spruce,  cedar  and  balsam.  Of  these  species  only  the  tam- 
arack is  much  used  for  lumber.  The  principal  hardwood  species  are 
yellow  birch,  sugar  maple,  basswood,  white  elm,  and  ash,  named  in 
the  order  of  their  importance.  Hemlock,  however,  outnumbers  all 
other  species. 

Young  growth  on  cut-over  land  is  usually  of  slow-growing  or  in- 
ferior species.  Fire  almost  invariably  runs  through  the  lands,  and 
after  the  fire  popple  and  bird  cherry  seed  in  abundantly.  Cut-over 
land  almost  invariably  reverts  to  such  popple  growth.  In  the  swamps 
and  undrained  land  there  is  frequently  very  promising  reproduction 
of  tamarack  which  would  be  of  value  if  protected  from  fire.  Under 
present  circumstances,  however,  there  are  probably  as  many  stands  of 
young  fire-killed  tamarack  poles  as  thrifty  growing  trees.  Cedar  also 
reproduces  well  in  many  of  the  swamps  and  seems  to  grow  in  the  wetter 
situations  where  fire  is  not  such  a  damaging  factor.  Pine  reproduction 
is  not  at  all  common  in  Price  county  where  yellow  birch  and  bass- 
wood  seed  in  well.  On  the  whole,  however,  cut-over  lands  are  either 
left  bare  and  fire-stripped  to  come  back  to  popple,  or  are  culled  and 
left  in  possession  of  the  defective  trees,  principally  maple,  good  only 
for  cordwood.  Probably  no  hardwood  county  shows  worse  effects  from 
forest  fires  than  Price,  and  millions  of  feet  are  killed  or  injured  from 
this  cause  annually. 

Rusk  county  has  excellent  agricultural  soil  throughout  and 
will  undoubtedly  make  one  of  the  leading  farming  districts  in  the 
northern  part  of  the  state.  This  county  was  originally  heavily  tim- 
bered, but  practically  all  of  the  white  pine  was  cut  out  years  ago. 
The  present  standing  timber  consists  of  hemlock  and  hardwood  in 
mixture,  the  bulk  of  which  is  situated  in  the  towns  of  Atlanta,  True, 
Lawrence,  Hawkins  and  Marshall.  The  average  stand  is  about  5,000 
board  feet  to  the  acre,  with  an  average  value  of  about  $5  per  M.  A 
conservative  estimate  would  place  the  amount  of  standing  timber  at 
300,000,000  board  feet.  The  cut  this  year,  1910,  will  be  about 
35,000,000  feet,  and  if  this  rate  of  cutting  is  continued,  the  remaining 
timber  in  the  county  should  last  about  nine  years  longer. 

Sawyer  county,  like  Price,  which  borders  it  on  the  east,  is  a  typical 
hardwood  county  with  a  light  loamy  soil  that  becomes  heavier  in  the 
southern  tier  of  towns.  In  the  northwestern  corner  there  is  a  very 
sandy  area  characterized  by  jack  pine,  Norway  pine  and  scrub  oak. 


14  THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN. 

Swamp  land  is  common  throughout  the  county,  and  makes  up  from 
3  to  4  per  cent  of  its  total  area.  There  are  numerous  lakes  in  the 
western  half.  The  timber  is  chiefly  hardwoods  and  hemlock  with  scatter- 
ing pine.  There  is  a  considerable  area  north  of  the  Lac  Courte  Oreille 
Indian  reservation  that  is  almost  barren  of  valuable  timber  growth,  the 
soil  being  a  coarse  sand  covered  with  a  scrubby  growth  of  oak,  cherry 
and  paper  birch.  It  is  claimed  that  no  valuable  timber  has  ever  been 
cut  from  this  area.  In  one  town  in  the  northeastern  part  of  the 
county  considerable  second-growth  pine  is  being  cut.  Taking  into 
consideration  all  the  timbered  land  in  the  county,  it  is  doubtful  if 
the  stand  per  acre  will  average  3,500  board  feet,  or  140,000  board  feet 
per  forty.  Large  areas  and  certain  whole  townships  may  average 
much  higher,  probably  5,000  board  feet  per  acre. 

Vilas  county  has  three  grades  of  soil:  sandy,  sandy  loam,  and  clay 
loam.  The  sandy  land,  aggregating  several  thousand  acres,  is  situated 
principally  along  the  streams.  The  clay  loam  is  found  north  of  the 
line  between  Tps.  42  and  43  and  in  a  part  of  T.  42,  Rs.  11  and  12, 
T.  41,  Rs.  11  and  12,  T.  40,  R.  12,  and  in  a  fraction  of  T.  40,  R.  11, 
and  T.  39,  R.  12.  Excepting  the  sandy  soil  the  remainder  of  the 
county  is  for  the  most  part  a  sandy  loam.  There  are  several  hun- 
dred lakes  varying  in  size,  and  numerous  swamps  and  a  considerable 
area  of  pine  marsh.  Boulders  and  rocks  in  large  quantities  character- 
ize the  hardwood  region,  and  in  many  places,  principally  around  the 
larger  lakes,  the  country  is  rough  and  hilly.  Only  about  20  per  cent 
of  the  county  remains  timbered.  The  total  stand  is  estimated  to  be 
approximately  480,000,000  board  feet. 

Cut -over  Land. 

About  60  per  cent  of  Bayfield  county,  95  per  cent  of  Douglas 
county,  50  per  cent  of  Florence  county,  20  per  cent  of  Forest  county, 
45  per  cent  of  Iron  county,  75  per  cent  of  Marinette  county,  67  per 
cent  of  Price  county,  78  per  cent  of  Rusk  county,  65  per  cent  of 
Sawyer  county,  and  78  per  cent  of  Vilas  county  has  been  cut  over. 
Or,  to  express  it  in  another  way,  out  of  the  total  area  of  6,518,560 
acres  for  these  counties,  the  timber  has  been  cut  from  approximately 
4,254,000  acres.  A  large  part  of  the  remainder,  however,  has  also  been 
more  or  less  heavily  culled  over  for  pine.  Much  of  this  cut-over 
land  is  owned  by  land  companies  who  are  trying  to  dispose  of  it  to 
settlers  at  from  $10  to  $18  per  acre.  In  some  of  the  counties,  however,  " 
some  of  the  larger  lumber  companies  are  not  selling  their  cut-over 


THE  TAXATION  OP  FOREST  LANDS  IN  WISCONSIN.  15- 

land,  although  they  are  not  holding  it  for  a  second  crop.  Presumably 
they  are  retaining  title  to  it  in  order  to  continue  in  control  of  the 
town  government,  thereby  making  it  possible  to  keep  the  taxes  on  their 
timbered  land  at  a  minimum.  Not  until  they  have  completed  opera- 
tions will  these  cut-over  lands  be  placed  upon  the  market.  While  it 
is  not  probable  that  any  great  amount  of  it  can  be  sold  to  settlers,  the 
lumber  companies  will  have  little  trouble  in  disposing  of  it  at  from 
$2  to  $4  per  acre  to  land  companies. 

The  bringing  into  use  of  this  great  quantity  of  cut-over  land,  the 
bulk  of  which  is  now  in  a  state  of  idleness  and  likely  to  continue 
so  under  present  conditions,  is  a  problem  of  first  importance.  Eventu- 
ally much  of  it  which  is  fit  for  agriculture  will  doubtless  be  placed 
under  cultivation.  Its  rapid  appropriation  for  farming,  however,  is 
not  probable.  Through  unfortunate  lack  of  information  many  of  the 
settlers  purchase  land  which  is  so  poor  in  soil  that,  even  after  valiant 
efforts,  they  fail  to  develop  it,  and  finally  are  compelled  to  let  it  go. 
Not  infrequently  the  land  is  sold  to  the  poor  but  well-intentioned 
non-resident  without  his  having  had  an  opportunity  to  view  it.  Often, 
in  such  cases,  the  land  that  he  has  purchased  is  not  fit  for  farming 
purposes,  and  the  result  is  abandonment.  These  cases  are  cited  merely 
to  show  some  of  the  elements  which  are  tending  to  defer  the  early 
development  of  that  part  of  the  cut-over  area  which  is  susceptible  oi 
cultivation. 

The  most  serious  phase  of  the  problem,  however,  is  to  bring  about 
a  utilization  of  the  non-agricultural  land.  It  is  not  worthless  land  by 
any  means,  for  it  can  be  successfully  used  for  growing  timber.  It  is 
essentially  a  forest  soil  and  should  unquestionably  be  kept  undei 
forest  growth.  At  present  the  greater  part  of  it  is  nothing  more  than 
waste,  and  what  is  worse,  the  owners  can  not  profitably  make  it  a 
timber-producing  property  even  if  they  were  so  inclined.  This  class 
of  land,  as  will  be  shown,  is  bearing  the  heaviest  tax  burden,  and 
more  than  any  other  is  entitled  to  consideration  in  any  plan  for  an 
equitable  adjustment  of  taxation.  It  is  this  land  which  should  furnish 
a  good  part  of  the  future  local  timber  supply,  and  in  order  that  this 
may  be  made  possible  through  private  initiative,  one  of  the  first  steps 
that  should  be  taken  is  to  provide  a  rational  forest  tax  law. 

Settlement  and  Agricultural  Development. 

According  to  the  latest  census  for  which  figures  are  available  the 
ten  nofthern  counties  had  a  population  of  141,763.  About  93,500,  or 


16  THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN. 

66  per  cent,  of  this  population  is  reported  as  living  in  the  various 
cities  and  villages,  leaving  a  little  more  than  48,000  for  the  rural  dis- 
tricts. While  many  farmers  doubtless  live  in  these  villages,  especially 
the  smaller  ones,  it  is  pretty  safe  to  say  that,  in  the  aggregate,  the 
greater  part  of  the  city  and  village  population  is  not  engaged  in 
agricultural  pursuits.  Probably  most  of  the  male  population  is  em- 
ployed in  sawmills  and  other  wood-working  industries.  Nor  would 
it  be  fair  to  say  that  the  entire  rural  population  is  engaged  in  agri- 
culture. Many  of  the  rural  residents  work  in  the  woods  for  the 
lumber  companies.  It  is  probable,  however,  that  that  part  of  the 
rural  population  not  engaged  in  agricultural  pursuits  is  about  equal 
to  the  number  of  village  residents  who  are  so  engaged,  and  this  gives 
an  agricultural  population  of  approximately  50,000-f  or  the  ten  counties. 
On  the  basis  of  five  persons  to  a  family,  this  would  give  an  average  of 
about  one  family  to  each  section  of  land.  Assuming  that  these  figures 
are  approximately  correct  it  is  evident  that  thus  far  there  has  been 
no  great  amount  of  agricultural  settlement,  nor  has  agricultural  de- 
velopment gone  far,  since  only  77,262  acres,  or  a  fraction  over  one 
per  cent  of  the  total  area,  is  improved  farm  land;  this  would  give  an 
average  of  less  than  eight  acres  of  improved  land  to  each  family. 

In  Bayfield  county,  where  the  total  area  of  all  the  towns  is  900,857 
acres,  only  4,796  acres  is  improved  farm  land.  Most  of  this  improved 
land  is  used  in  the  production  of  hay,  oats  and  potatoes.  It  is  probable 
that  this  county  will  never  be  a  foremost  agricultural  county.  There 
are  parts  of  it  that  may  be  adapted  to  dairying,  and  still  smaller  areas 
where  profitable  farms  will  be  developed,  but  a  good  share  of  it  is  a 
forest  soil  and  should  be  kept  under  forest  growth.  It  is  the  opinion  of 
some  that  this  county  should  make  a  good  s.trawberry  district. 
Situated  as  it  is  on  Lake  Superior,  the  waters  of  the  lake  keep  the 
surrounding  country  very  cool  until  early  summer,  make  a  late  spring, 
and,  therefore,  make  possible  the  raising  of  strawberries  after  they 
are  gone  in  other  districts.  This  industry,  however,  can  never  occupy 
a  very  large  part  of  the  county,  and  at  present  but  15  acres  are  so 
utilized.  Many  of  the  settlers  are  dissatisfied  and  would  be  glad  to 
sell  out  This,  however,  is  equally  true  of  many  of  the  other  counties. 

Although  Douglas  county  is  more  completely  cut  over  than  any  of 
the  other  northern  counties,  yet  it  has  only  6,904  acres  of  improved 
farm  land.  With  the  total  area  of  the  several  towns  aggregating 
782,395  acres  it  is  apparent  that  agriculture  is  not  much  developed. 
The  predominant  crops  are  the  same  as  those  in  Bayfield  county.  In 


THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN.  17 

Florence  county,  out  of  a  total  area  of  307,732  acres,  there  are  6,450 
acres  of  improved  farm  land.  With  one  exception,  Forest  county  has 
the  smallest  area  of  improved  farm  land  of  any  of  the  counties  covered, 
the  total  amount  being  2,382  acres.  It  should  be  remembered,  however, 
that  only  about  20  per  cent  of  this  county  has  been  cut  over,  and  there 
is  a  very  small  amount  of  such  area  which  is  sufficiently  accessible  to 
make  settlement  attractive  at  this  time.  Until  more  of  the  timber  has 
been  removed,  there  is  not  much  likelihood  that  settlement  will  be  en- 
couraged by  the  owners  of  the  land,  for  the  reason  that  an  increasing 
number  of  settlers  would  doubtless  make  it  impossible  for  the  large 
lumber  companies  to  continue  in  control  of  the  local  government.  In 
all,  there  are  only  about  200  settlers.  Most  of  the  settlement  in  Iron 
county  is  in  the  northern  part  where  the  best  soil  occurs  and  where  the 
timber  has  been  removed.  The  total  area  of  improved  farm  land  is 
2,386  acres.  The  total  area  of  the  county  is  453,432  acres.  At  present 
settlement  is  very  backward  and  there  is  not  much  prospect  that  it  will 
improve. 

Marinette  county  is  more  extensively  developed  along  agricultural 
lines  than  any  of  the  others,  there  being  something  over  30,000  acres  of 
improved  farm  land  out  of  a  total  area  of  884,719  acres.  In  the  order 
of  their  importance  the  crops  raised  are  hay,  oats,  corn,  potatoes,  rye,, 
barley,  wheat  and  sugar  beets.  Out  of  a  total  area  of  777,761  acres  for 
the  several  towns  in  Price  county  there  are  10,236  acres  reported  as 
improved  farm  land.  The  crops  raised  here  are  about  the  same  as  they 
are  in  the  other  northern  counties,  with  the  exception  that  a  larger  per- 
centage of  the  land  is  in  hay,  the  acreage  devoted  to  that  crop  being 
7,666  acres.  At  present  good  land,  free  of  stumps  and  stones,  can  be 
purchased  at  an  average  price  of  from  $30  to  $35  per  acre,  but  not  sep- 
arate from  unimproved  land.  Some  of  the  best  improved  land  in  the 
center  of  the  county  can  be  bought  for  $40  per  acre,  including  buildings 
and  other  improvements.  Rusk  county  is  reported  to  have  8,638  acres 
of  improved  farm  land  out  of  a  total  area  of  579,203  acres.  The  crops 
are  about  the  same  as  in  the  other  counties,  with  the  exception  that 
there  are  a  few  acres  in  tobacco  and  strawberries.  The  area  of  im- 
proved farm  land  in  Sawyer  county  is  3,988  acres.  The  total  area  of 
the  county  is  651,285  acres.  It  is,  therefore,  apparent  that  a  very 
small  proportion  of  the  county  has  been  developed  along  agricultural 
lines.  Here,  too,  .the  principal  crops  are  hay,  oats  and  potatoes.  Al- 
though 78  per  cent  of  Vilas  county  has  been  cut  over,  it  has  the 
smallest  amount  of  improved  farm  land  of  any, — only  1,458  acres.  Set- 


18  THE  TAXATION  OP  FOREST  LANDS  IN  WISCONSIN. 

tlement  is  very  backward  at  present,  and  prospects  for  improvement 
are  not  very  encouraging.  While  there  is  a  considerable  amount  of  land 
in  the  county,  which  could  be  adapted  to  agricultural  use,  it  is  at 
present  so  inaccessible  that  settlers  can  not  come  in  and  clear  and  farm 
it  with  profit. 

Probably  the  greatest  deterrent  to  the  settlement  and  development 
of  these  counties  is  the  cost  of  clearing  the  land  of  stumps  which 
ranges  from  $15  to  $100  per  acre.  This  expense,  added  to  the  purchase 
price  of  the  land  makes  it  a  pretty  expensive  proposition,  especially  for 
those  with  limited  funds.  In  many  instances  the  settler  is  compelled  to 
abandon  his  land,  for  the  reason  that  he  has  not  sufficient  money  to 
supply  him  with  the  ordinary  necessities  of  life  until  enough  clearing 
has  been  done  to  make  the  land  productive. 

Annual  Cut  and  Importance  of  Lumber  Industry. 

From  year  to  year  as  the  amount  of  standing  timber  is  reduced,  the 
annual  cut  is  being  lessened.  This  reduction  is  slowly  but  surely  wiping 
out  the  most  important  industry  in  these  northern  counties.  The 
material  welfare  of  many  communities  in  this  region  has  already  suf- 
fered from  the  loss  of  wood-working  industries,  and  as  the  forest  is 
further  depleted,  others  must  likewise  suffer.  The  present  importance 
of  this  industry  in  the  ten  counties  is  shown  by  the  750,000,000  board 
feet  of  lumber  cut  during  the  year  1908.  In  addition  to  this,  a  large 
amount  of  timber  was  cut  in  these  counties  for  transportation  to  mills 
outside.  For  instance  the  mills  in  Marathon  county,  where  more  than 
143,000,000  feet  were  sawn  in  1908,  depend  in  a  large  measure  on  the 
more  northern  counties  for  their  timber  supply. 

If  this  important  industry  is  to  be  even  partially  perpetuated  it  will 
be  necessary  in  some  way  to  encourage  the  growing  of  new  forests,  and  a 
reform  in  the  method  of  taxing  forest  land  should  play  an  important 
part  in  making  it  profitable  for  private  owners  to  take  up  the  work  of 
reforesting  their  cut-over  lands. 

Jefferson  County. 

Although  the  study  of  the  tax  question  in  its  relation  to  forests  and 
forestry  in  Wisconsin  is  of  chief  importance  only  in  the  northern  half 
of  the  state,  where  practically  all  of  the  remaining  saw-timber  is  found, 
it  was  nevertheless  deemed  advisable  to  make  a  brief  investigation  of 
the  conditions  in  one  of  the  typical  southern  counties,  in  order  to 
ascertain  if  possible  whether  any  beneficial  results  in  the  way  of  timber 


THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN.  19 

production  or  conservation  of  woodlots  might  be  secured  in  the  agri- 
cultural part  of  the  state  by  a  change  in  the  present  method  of  taxation. 
For  this  purpose  the  county  of  Jefferson  was  selected. 

Jefferson  is  a  typical  farm  county,  and  is  fairly  representative  of  the 
southern  third  of  the  state  which  is  a  rich  and  level  or  slightly  rolling 
agricultural  section.  In  1908,  with  a  total  area  of  346,720  acres,  124,208 
acres  were  in  improved  farms.  The  timber  has  been  almost  entirely  re- 
moved and  is  now  found  only  in  small  and  widely  scattered  woodlots. 
Many  farms  have  practically  no  timber  or  forest  trees  left  standing  on 
them,  and  those  farmers  who  have  maintained  small  areas  in  woods, 
appear  to  value  the  woodlots  more  for  the  shade  they  afford  their  cattle 
than  for  their  wood-producing  capacity. 

As  a  result  of  this  widespread  grazing  of  the  woodlots  but  little  young 
growth  is  coming  in.  Consequently,  with  the  gradual  dying  out  of  the 
old  trees,  the  stands  have  each  year  become  more  and  more  open  until 
now,  in  most  cases,  the  forest  floor  is  covered  with  grass,  and  the  so- 
called  woodlot  is  really  only  an  open  grove  of  scattered  trees,  bearing 
little  resemblance  to  true  forest  and  destined  to  disappear  with  the 
death  of  the  present  mature  trees. 

When  dealing  with  land  of  such  great  agricultural  value  as  is  found 
in  this  county,  the  question  naturally  arises  whether  the  farmers  can 
really  a'fford  to  practice  forestry  or  conservatively  manage  their  existing 
woodlots.  Any  discussion  as  to  remedial  tax  legislation  that  does  not 
give  full  consideration  to  this  question  of  the  most  profitable  use  to 
which  lands  can  be  put,  will  necessarily  fall  short  of  the  mark. 

Land  values  throughout  Jefferson  county  range  from  $80  to  $150  per 
acre,  the  only  exceptions  being  very  limited  areas  of  rough  land  in  the 
southeastern  part  of  the  county  and  scattered  marsh  land  constituting 
scarcely  one  per  cent  of  the  total  area.  Such  marsh  land  has  a  very 
fluctuating  value  and  in  some  years  may  be  purchased  as  low  as  $10  per 
acre.  Existing  woodlots,  however,  are  principally  limited  to  typical 
agricultural  soils,  and  there  need  be  no  hesitation  in  acknowledging 
that  sites  of  this  character  could  be  made  far  more  productive  finan- 
cially if  cleared  of  their  timber  and  converted  into  farm  land.  It  is 
doubtful,  however,  if  there  is  at  present  over  15  per  cent  of  this  farm- 
ing section  that  is  occupied  by  such  woodlots,  and  there  is,  therefore, 
no  great  urgency  on  the  part  of  the  landowners  to  clear  off  this  small 
remnant.  Yet  this  per  cent  is  certain  to  decrease  during  the  next  fifty 
years,  unless  the  farmer  can  be  convinced  of  the  unwisdom  of  further 
depriving  the  county  of  its  natural  forest  cover. 


20  THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN. 

From  interviewing  many  farmers  in  the  county  it  is  apparent  that  the 
more  progressive  of  them  are  really  interested  in  caring  for  their  woods, 
and  are  of  the  opinion  that  they  can  often  well  afford  to  leave  a  strip 
of  woodlot  on  $100  land,  because  of  other  considerations  than  the  direct 
money  return  from  the  woods.  In  many  cases  the  value  of  a  large  part 
of  a  farm  is  enhanced  by  the  protection  from  parching  winds  afforded 
by  a  neighboring  woodlot.  The  regulated  and  limited  use  of  a  woodlot 
as  shade  for  cattle  is  also  greatly  appreciated  by  most  of  the  farmers. 
It  will  undoubtedly  be  to  the  advantage,  then/of  the  country  in  general 
to  maintain  at  least  5  per  cent  of  even  such  valuable  land  as  this  in 
timber,  and  there  seems  to  be  no  doubt  that  some  adjustment  of  taxes 
in  favor  of  small  woodlots  would  prove  very  beneficial. 

It  is  right  here  that  the  question  of  taxation,  as  applied  to  timber,  is 
an  important  factor.  Timber  land  throughout  the  county  is  assessed  as 
high  as  the  cultivated  land  on  a  farm.  Yet  in  spite  of  this  there  are 
many  farmers  who  prefer  to  keep  from  10  to  15  acres  in  timber.  If  the 
productive  capacities  of  fields  adjacent  to  a  forest  are  augumented  by 
its  protection,  the  increased  earning  power  of  that  field  should  not  be 
charged,  for  taxation  purposes,  both  to  it  and  to  the  forest  as  well.  The 
forest  land  should  be  taxed  only  for  what  it  can  be  made  to  produce  in 
wood  material.  The  amount  necessary  to  be  raised  by  taxes  will 
naturally  be  made  up  on  the  agricultural  land,  but  such  adjustment 
would  unquestionably  encourage  the  farmer  to  preserve  his  woodlands 
and  enable  the  more  enterprising  to  practice  forestry  at  a  fairer 
profit.  Fully  5  per  cent  of  the  area  of  any  farm  community  should  be 
kept  forested,  as  the  most  progressive  residents  fully  realize,  for  the 
sake  of  both  the  community  and  the  individual. 

It  is  evident  that,  under  such  a  plan,  the  larger  the  forest  area  on  a 
farm  the  lighter  the  owner's  tax  would  be,  yet  the  greater  productive 
capacity  of  the  land  when  devoted  to  farming,  would  automatically 
check  a  farmer  from  trying  to  reduce  his  taxes  by  maintaining  large 
areas  in  woods.  By  reducing  the  valuations  on  woodlots  to  25  per  cent 
a  progressive  farmer  would  simply  be  encouraged  to  maintain  his  5  to 
10  acres  of  woodlot,  or  as  much  as  he  might  need,  and  the  farmer  who 
would  take  no  interest  in  preserving  his  trees  would,  of  course,  feel  the 
increase  in  the  tax  on  his  farm  land.  The  average  farmer,  however, 
would  scarcely  feel  any  difference  in  his  tax  burden. 


THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN.  21 


EXAMPLES  OF  ACTUAL  TAXATION. 

The  following  are  a  few  typical  examples  from  a  large  number  of 
cases,  comparing  the  assessed  value  with  the  actual  value. 

On  one  forty  in  one  of  the  northernmost  counties  an  estimate  of  the 
timber  shows  765,000  board  feet  of  white  pine  and  85,000  board  feet  of 
red  pine,  with  a  little  scattering  of  hardwoods,  mostly  birch  and  maple. 
The  value  of  the  timber  "is  easily  $6,715,  and  the  value  of  the  land  is 
placed  at  a  little  less  than  $4  per  acre,  or  $150  for  the  forty,  making  a 
total  estimated  value  of  $6,865.  The  assessed  value  in  1909  was  placed 
at  $3,450,  or  practically  50  per  cent  of  the  true  value.  The  tax  rate  in 
this  case  was  .0246. 

On  another  forty  the  estimated  stand  of  timber  is  810,000  board  feet 
of  white  pine  and  90,000  board  feet  of  red  pine,  with  practically  no 
hardwoods  in  mixture.  The  stumpage  value  of  the  timber  is  conserva- 
tively placed  at  $7,110  and  the  value  of  the  land  at  $150,  making  an 
estimated  true  value  for  the  forty  of  $7,260.  The  assessed  value  in  1909 
was  $1,200  or  16  per  cent  of  the  true  value.  The  tax  rate  in  this  case 
was  .0242. 

A  very  large  number  of  forties  in  this  county  are  assessed  at  a  flat 
rate  of  $1,200,  which  makes  a  variation  of  from  16  to  60  per  cent  of  the 
estimated  true  value  of  the  forty. 

The  hardwood  land  is  assessed  at  about  the  same  ratio  to  its  true 
value  as  the  pine  land.  One  forty,  containing  100,000  board  feet  of 
hemlock,  10,000  board  feet  of  basswood,  and  160,000  board  feet  of 
birch,  is  estimated  to  be  worth  $800  for  the  timber  alone.  Adding  $150 
for  the  land  gives  a  total  value  of  $950.  The  assessed  value  in  1909  was 
$260  or  27  per  cent  of  the  estimated  true  value.  The  tax  rate  in  this 
case  was  .0338. 

One  forty  in  another  county  has  a  stand  of  540,000  board  feet  of 
white  pine  and  20,000  board  feet  of  red  pine.  The  timber  itself  is 
worth  $6,680  and  the  land  about  $80,  making  a  total  value  of  $6,760. 
The  forty  was  assessed  at  $2,418  in  1909  or  about  36  per  cent  of  its  true 
value.  The  tax  rate  was  .044, 

Another  forty  contains  800,000  board  feet  of  white  pine  which  is 
worth  $9,600.  The  land  is  worth  about  $2  per  acre,  making  a  total  of 
$9,680.  The  assessed  value  is  $2,780  or  28.7  per  cent,  and  the  tax  rate 
was  .044. 

A  high  assessment  appears  in  another  forty  which  has  a  stand  of: 
110,000  board  feet  of  white  pine  worth  approximately  $1,320.  The 


22  THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN. 

timber  and  land  together  are  worth  $1,400  and  were  assessed  in  1909  at 
$1,280,  giving  a  ratio  between  assessed  and  true  values  of  over  91  per 
cent,  and  the  tax  rate  was  .044. 

A  farm  of  160  acres  in  the  western  part  of  the  same  county  has  60 
acres  of  cleared  land.  It  is  valued  at  about  $35  per  acre  for  cultivated 
land  and  $6  for  unimproved  land,  which  makes  a  total  value  of  $2,700. 
The  assessed  value  in  1909  was  $840,  or  31  per  cent  of  the  true  value, 
and  the  tax  rate  was  .044. 

Much  of  the  cut-over  land  in  another  county  is  assessed  at  $80  a  forty 
or  $2  an  acre.  As  low  assessments  as  $60  a  forty,  or  $1.50  an  acre,  are 
found.  Such  land  as  is  assessed  at  this  latter  figure  is  usually  swampy 
and  of  practically  no  value  for  forest  growth  when  once  cut  over,  owing 
to  the  difficulty  of  getting  the  land  naturally  restocked  with  trees. 
It  is  probable  that  the  average  value  of  cut-over  land  in  this  county 
does  not  exceed  $2.50  an  acre,  and  much  of  it  is  worth  less.  Therefore, 
an  assessment  of  $80  a  forty  on  cut-over  land  is  practically  at  the  ratio 
of  100  per  cent  of  its  true  value.  There  are  large  areas  of  cut-over 
land  also  that  are  assessed  as  high  as  $200  a  forty,  and  in  some  cases 
individual  assessments  arc  found  even  higher.  Such  assessments  are 
often  in  excess  of  the  true  value  of  the  land.  Timbered  forties  in  the 
county  are  more  or  less  uniformly  assessed  at  an  even  figure  of  $200, 
$300,  $360,  $380,  $400,  $440,  or  $500.  Five  hundred  dollars  is  prac- 
tically the  highest  assessment  on  timbered  land  in  the  county.  In  cer- 
tain townships  a  flat  figure  of  $260,  $340,  or  $400  a  forty  will  be  used 
for  several  sections  of  land. 

In  still  another  county  one  timber  tract,  which  was  taxed  at  about 
the  average  value,  consists  of  41  acres  of  good  timber,  running  about 
175,000  board  feet  and  worth  conservatively  $550.  The  land  is  of  value 
for  farming  and  ought  to  bring  $7  per  acre.  If  the  true  value  is  put  at 
$830  for  the  tract,  the  assessed  value  of  $350  is  about  42  per  cent.  The 
timber  consists  of  100,000  board  feet  of  hemlock,  35,000  board  feet  ol 
birch,  20,000  board  feet  of  basswood,  and  20,000  board  feet  of  maple. 
The  tax  rate  in  this  case  in  1 909  was  .0308. 

Another  good  40-acrc  tract  of  timber  is  estimated  to  contain  60,000 
board  feet  of  basswood,  75,000  board  feet  of  birch,  25,000  board  feet  of 
maple,  and  25,000  board  feet  of  hemlock.  The  timber  is  easily  worth 
$800  and  the  land  $7  per  acre,  making  a  total  true  value  of  $1,080  for 
the  forty.  The  assessed  value  in  1909  was  only  $280,  giving  the  low 
ratio  of  25.9  per  cent.  The  tax  rate  in  this  case  was  .0253.  In  this  town, 
however,  all  assessing  is  done  by  the  woods  foreman  of  the  principal 


THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN.  23 

lumber  company,  which  undoubtedly  accounts  for  the  low  ratio  of 
assessed  to  true  values. 

Cut-over  lands  in  this  county,  are  appraised  at  uniformly  higher 
figures  in  proportion  to  their  value,  as  witness  the  following  cases:  A 
tract  of  120  acres,  all  wild,  cut-over  land  was  sold  in  October,  1909,  for 
$1,300.  Its  assessed  value  was  $850,  showing  a  ratio  of  65  per  cent.  A 
similar  tract  of  80  acres,  near  a  village,  was  sold  in  October  of  the  same 
year  for  $800  which  was  only  $20  more  than  its  assessed  value.  The 
ratio  in  this  case  is,  therefore,  97  per  cent.  Another  cut-over  tract — a 
pine  slashing  of  200  acres — was  sold  in  1907  for  $660,  at  which  figure  it 
was  assessed,  making  a  ratio  of  100  per  cent. 

Farm  land,  even  where  improved,  is  not  assessed  much  higher  than 
wild  land  in  this  county.  Eighty  acres  of  good,  level  farm  land  brought 
a  price  in  July,  1907,  of  $4,000.  Buildings  included  were  not  worth 
$200.  The  land  at  the  time  was  assessed  at  $900  or  only  23  per  cent  of 
its  sale  value.  The  ratio  naturally  increases  with  the  proportion  of 
wild,  unimproved  land. 

In  another  county  cut-over  lands  in  a  number  of  towns  are  assessed 
uniformly  at  $100  per  forty  or  $2.50  an  acre.  In  other  towns  they  are 
assessed  at  from  $160  to  $200  a  forty  or  $4  and  $5  an  acre,  respectively. 
The  true  value  of  the  land  varies  considerably  in  these  towns,  and  it  is 
not  probable  that  it  is  uniform  over  a  large  area,  such  as  one  township, 
especially  where  one  portion  of  the  township  contains  good  roads,  vil- 
lages, streamg  and  improvements,  and  the  other  end  of  the  township 
contains  nothing  but  wild  land;  yet  the  assessments  on  cut-over  lands 
are  the  same  throughout  the  entire  township.  Agricultural  land  is 
assessed  at  a  slightly  higher  rate  than  cut-over  land,  but  farm  improve- 
ments and  buildings  are  assessed  only  at;  from  $25  to  $150  per  farm.  In 
many  cases  these  improvements  are  easily  worth  several  thousand 
dollars. 

On  one  forty  in  the  county  there  are  estimated  to  be  15,000  board 
feet  of  white  pine,  20,000  board  feet  of  tamarack,  75,000  board  feet  of 
hemlock,  50,000  board  feet  of  basswood,  15,000  board  feet  of  birch,  and 
5,000  board  feet  of  elm.  The  actual  value  of  the  land  and  timber  is  es- 
timated to  be  $1,027.  The  assessed  value  for  this  forty  was  placed  in 
1909  at  $600  or  58  per  cent  of  the  true  value.  The  tax  rate  in  this  case 
was  .0227. 

In  another  county  farther  south,  where  there  is  a  very  large  area  of 
agricultural  soil,  one  tract  containing  160  acres  sold  in  March,  1910,  for 
$4,000,  of  which  $3,040  represents  the  timber  value.  Hardwoods  and 


24  THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN. 

hemlock  were  estimated  to  run  about  6,500  board  feet  per  acre.  The 
assessor  valued  this  tract  in  1909  at  $1,080  or  only  27  per  cent  of  its 
sale  value.  The  tax  rate  in  this  case  was  .0334. 

Cut-over  land  is  assessed  very  high  One  tract  of  80  acres,  with 
nothing  but  cordwood  remaining,  is  held  for  $300  and  assessed  for  $200 
or  66  per  cent.  Several  typical  forties  of  slash  land,  belonging  to  a 
large  farm  in  the  west  of  the  county,  could  be  bought  for  $280  per 
forty,  while  the  assessed  values  are  $200  per  forty  or  71  per  cent.  The 
tax  rate  was  .0252. 

One  forty  in  the  south  of  the  county  can  be  purchased  from  a  land 
agent  for  $300.  This  same  tract,  which  is  cut  over  and  windfall,  was 
taxed  in  1909  at  a  valuation  of  $250  or  83  per  cent  of  its  true  value. 
The  tax  rate  was  .0433. 

A  10-acre  farm,  entirely  clear  of  stones  and  stumps,  is  assessed  at 
$128.  It  was  sold  in  February,  1909,  for  $580,  which  gives  a  ratio  of 
only  22  per  cent  between  assessed  and  true  values.  The  tax  rate  was 
.0252. 

Farms  with  a  large  proportion  of  wild  land  bear  a  heavier  assessment 
compared  to  their  true  value,  as  is  evident  from  the  following  case  of  a 
160-acre  farm  in  the  southern  part  of  the  county.  Only  30  acres  are 
cultivated.  The  whole  farm  is  worth  about  $2,700  and  is  assessed  at 
$1,250,  a  little  less  than  half  its  true  value.  The  ratio  is  46  per  cent. 
The  tax  rate  was  .0433. 

On  one  forty  in  another  agricultural  county  an  estimate  of  the  timber 
shows  1,000  board  feet  of  white  pine,  20,000  board  feet  of  hemlock, 
25,000  board  feet  of  birch,  5,000  board  feet  of  ash,  and  2,000  board  feet 
of  maple.  The  stumpage  value  of  this  timber  is  estimated  at  $177  and 
the  value  of  the  land  at  $6  an  acre,  making  a  total  value  for  the  forty  of 
$417.  The  assessed  value  in  1909  was  placed  at  $360  or  86.3  per  cent  of 
the  true  value.  The  tax' rate  in  this  case  was  .0221. 

On  another  forty  the  estimated  stand  of  timber  is  70,000  board  feet 
of  hemlock,  4,000  board  feet  of  basswood,  75,000  board  feet  of  birch, 
10,000  board  feet  of  elm,  7,000  board  feet  of  ash,  and  10,000  board  feefc 
of  maple.  The  estimated  value  of  the  timber  is  $563,  and  the  value  of 
the  land  at  $6  an  acre  makes  a  total  estimated  value  for  the  forty  of 
$803.  The  assessed  value  in  1909  was  $340  or  42.3  per  cent  of  the  true 
value.  The  tax  rate  was  .0221. 

In  certain  towns  in  the  county  land  itself  is  assessed  at  $240  a  forty 
or  $6  an  acre.  Granting  that  the  true  value  of  the  land  is  $6  an  acre, 
this  is  an  assessment  of  100  per  cent  of  the  true  value,  and  it  is,  there- 


THE  TAXATION  OP  FOREST  LANDS  IN  WISCONSIN.  25 

fore,  a  considerably  higher  ratio  than  the  assessed  value  of  timbered 
land  in  the  same  county.  In  other  towns  the  assessment  on  cut-over 
land  is  from  $280  to  $340  a  forty  or  from  116  to  142  per  cent  of  the 
true  estimated  value. 

The  assessed  value  of  farming  land  throughout  the  county  is  the  same, 
or  practically  the  same,  as  the  assessed  value  of  cut-over  land,  and  the 
improvements,  such  as  buildings,  are  assessed  as  a  rule  at  from  $25  to 
$50.  Practically  the  lowest  assessments  on  cut-over  land  in  the  county 
are  $110  a  forty.  Such  forties  are  usually  a  long  way  from  villages, 
railroads,  or  roads.  This  is  an  assessment  of  $2.75  an  acre,  and  is  prob- 
ably as  much  as  the  land  is  worth  in  such  localities. 

In  still  another  county  the  estimated  stand  of  timber  on  a  tract  of  80 
acres  in  the  southeastern  part  of  the  county  is  350,000  board  feet  of 
hemlock,  10,000  board  feet  of  tamarack,  15,000  board  feet  of  basswood, 
70,000  board  feet  of  birch,  and  20,000  board  feet  of  elm.  The  land  is 
worth  about  $6.25  per  acre,  and  the  timber  should  easily  bring  $1,350. 
The  total  estimated  true  value  of  the'  tract  is,  therefore,  $1,850.  The 
total  assessed  value  in  1909  was  $500  or  about  28  per  cent  of  the  true 
value.  The  tax  rate  in  this  case  was  .026. 

One  of  the  highest  assessments  was  noted  on  a  forty  on  which  timber 
was  light ;  about  15,000  board  feet  of  hemlock,  5,000  board  feet  of  tam- 
arack, 5,000  board  feet  of  birch,  and  2,000  board  feet  of  basswood.  The 
total  value  of  the  timber  was  about  $85  and  of  the  land  $240,  making  a 
total  of  $325  as  against  an  assessment  of  $265.  This  gives  a  ratio  of 
assessed  to  true  value  of  81  per  cent.  The  tax  rate  was  .0344. 

Cut-over  land  in  this  county  is  commonly  assessed  high.  Forty  acres 
of  rolling  or  rather  stony,  wild  land  in  the  southeastern  part  was 
assessed  as  high  as  $250,  whereas  it  certainly  could  not  bear  a  higher 
valuation  than  $6  per  acre.  The  ratio  here  in  1909  was,  therefore,  more 
than  100  per  cent  of  the  actual  value,  and  the  tax  rate  was  .026. 

Another  40  acres  in  the  same  town,  but  nearer  the  railroad,  was  as- 
sessed after  being  cut  over  at  $250.  The  company  believed  it  was  worth 
$12  per  acre,  but  if  the  true  value  is  placed  at  $400  for  the  forty,  the 
result  is  conservative  and  gives  a  ratio  of  assessed  to  true  value  of  62.5 
per  cent.  The  tax  rate  in  this  case  was  also  .026. 

A  great  deal  of  the  best  farm  land  in  the  county  is  assessed  at  only 
20  per  cent  of  its  true  value.  A  200-acre  farm  in  one  town  is  assessed 
at  $10  per  acre,  and  yet  the  owner  would  not  sell  for  less  than  $50  per 
acre,  showing  a  ratio  of  20  per  cent.  The  tax  rate  in  this  case  was 
.0252. 


26  THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN. 

The  rate  of  assessments  in  another  northern  county  varies  greatly,, 
according  to  the  towns  and  the  control  which  the  lumber  companies  have 
over  the  town  boards.  In  one  town  the  ratio  of  assessed  to  true  value  is 
71  per  cent,  and  in  individual  cases  even  greater.  On  one  lot  of  29  acres 
in  this  county  the  stand  of  timber  is  estimated  as  follows :  White  pine 
8,500  board  feet,  tamarack  14,000  board  feet,  hemlock  68,000  board  feet, 
birch  54,000  board  feet,  elm  5,000  board  feet,  ash  2,000  board  feet,  maple 
8,000  board  feel,  and  cedar  4,000  board  feet.  The  value  of  the  timber  is 
estimated  at  $646,  and  the  value  of  the  land  at  $2  an  acre,  or  $58  for 
the  lot,  making  a  total  of  $704.  In  1909  this  lot  was  assessed  at  $600, 
or  85  per  cent  of  the  estimated  true  value,  and  the  tax  rate  was  .039. 

On  one  forty  the  stand  of  timber  is  as  follows:  White  pine  82,000 
board  feet,  spruce  15,000  board  feet,  tamarack  33,000  board  feet,  hem- 
lock 18,000  board  feet,  basswood  7,000  board  feet,  birch  25,000  board 
feet,  ash  2,000  board  feet,  maple  5,000  board  feet,  and  cedar  5,000  board 
feet.  The  value  of  the  timber  in  this  case  is  estimated  at  $1,229  and 
the  value  of  the  land  at  $2  an  acre,  giving  a  total  value  or  $1,309.  The 
assessed  v^lue  in  1909  was  $990,  or  75.6  per  cent  of  the  true  value,  and 
the  tax  rate  was  .039. 

In  another  town  in  the  same  county  the  assessments  are  a  great  deal 
lower.  On  one  forty  there  is  estimated  to  be  100,000  board  feet  of  white 
pine.  The  value  of  the  timber  is  placed  at  $1,000  and  the  value  of  the 
land  at  $2  an  acre,  or  $80  for  the  forty,  making  a  total  value  for  the 
forty  of  $1,080.  The  assessed  value  in  1909  was  $110,  or  10.2  per  cent 
of  the  true  value,  and  the  tax  rate  was  .0514. 

The  average  ratio  of  assessed  to  true  value  of  timbered  forties  in  one 
town  in  the  county  is  less  than  20  per  cent  of  the  true  value.  In  an- 
other town  it  is  71  per  cent  of  the  true  value,  in  another  town  13  per 
cent. 

The  small  number  of  improved  tracts  in  this  county  makes  it  dif- 
ficult to  get  at  the  average  ratio  of  the  assessed  to  the  true  value  in  the 
case  of  farm  lands.  In  one  instance  of  a  quarter  section,  having  more 
than  80  acres  partly  cleared  and  on  all  of  which  crops  are  raised,  the 
land,  exclusive  of  improvements,  is  assessed  at  $910  or  an  average  of 
$5.70  per  acre.  Taking  into  consideration  the  location  and  productivity 
of  these  lands  and  the  improvements  thereon,  it  would  unquestionably 
be  conservative  to  value  the  land  at  $2,800  or  an  average  of  $17.50  per 
acre.  The  true  value  of  the  improvements  on  this  tract  is  not  less  than 
$2,300,  yet  they  are  assessed  at  $800.  On  a  basis  of  the  above  estimate 
the  true  value  of  the  lands  and  improvements  is  $5,300.  The  total  as- 


THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN.  27 

sessed  value  is  $1,710,  making  the  ratio  of  assessed  to  the  true  value  a 
faction  over  32  per  cent. 

It  is  believed  that  for  this  entire  county  the  average  ratio  of  assessed 
to  true  value,  in  the  case  of  farm  lands,  will  not  exceed  30  per  cent. 
The  72  transfers  of  real  estate,  made  during  the  year  of  1909,  show 
the  ratio  of  assessed  to  market  value  (purchase  price)  to  be  25.6  per 
cent  or  more  than  4  per  cent  lower  than  the  figure  given  above. 

SUMMARY  OF  ASSESSED  VALUES  COMPARED  WITH  ACTUAL  VALUES. 

Assessments  of  Timberland. 

On  pages  21  to  27  attention  has  been  called  to  only  a  .few  specific 
cases,  illustrating  the  inequality  and  arbitrariness  in  assessing  timber- 
land  under  the  present  method  of  taxation.  In  the  course  of  the  study 
the  assessed  and  estimated  true  values  were  obtained  for  many  other 
timbered  descriptions,  but  it  is  not  believed  any  useful  end  will  be 
served  by  a  separate  discussion  of  each  tract.  However,  they  have  been 
grouped  by  counties  and  are  given  in  the  following  tables. 

These  tables  clearly  show  the  pronounced  and  unwarranted  variance 
in  the  ratio  of  the  assessed  to  the  true  value  which  now  obtains.  As 
will  be  observed,  this  variation  in  the  ratio  ranges  from  16  to  62  per 
cent  in  County  A,  12  to  60  per  cent  in  County  B,  22  to  83  per  cent 
in  County  C,  42.1  to  88  per  cent  in  County  D,  12  to  81  per  cent  in 
County  E,  and  1.7  to  183.7  per  cent  in  County  F.  It  would  seem  that 
the  assessor  did  not  even  attempt  to  base  his  assessed  values  upon  a 
given  percentage  or  fraction  of  the  true  values.  Although  there  are  a 
few  instances  of  overvaluation,  as  well  as  a  few  instances  where  the 
assessed  is  not  far  short  of  the  true  value,  yet  in  the  general  run  of 
cases  there  has  been  gross  undervaluation.  An  examination  of  these 
tables  will  also  show  that  almost  uniformly  the  ratio  of  the  assessed  to 
true  value  is  highest  on  the  tracts  of  least  value,  and  that  as  the  value 
of  the  tracts  increases  the  ratio  decreases.  The  figures  given  are  for 
the  year  1909. 


THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN. 


County  A. 


Case 
No. 

Acres 

Tax  rate 
1909. 

Assessed 
value. 

ESTIMATED  TRTJE  VALUE. 

Ratio  of 
assessed 
to  true 
value. 

Remarks, 

Timber 

Land. 

Total. 

Per  cent 

1 

*o 

$0.0338 

$    210 

$    400 

$150 

$    550 

38 

Hardwoods. 

2 

44 

44 

225 

620 

150 

770 

29 

3 

44 

44 

260 

800 

150 

950 

27 

44 

4 

** 

44 

270 

655 

150 

805 

33 

14 

5 

' 

44 

200 

690 

150 

840 

24 

44 

6 

1 

.0214 

220 

550 

150 

700 

31 

44 

7 

4 

300 

1,115 

150 

1,265 

24 

Hemlock  and  pine. 

8 

4 

44 

330 

1,230 

150 

1,380 

24 

9 

4 

" 

230 

280 

150 

430 

54 

Hardwoods, 

10 

4 

44 

230 

720 

150 

870 

26 

11 

44 

330 

1,080 

150 

1,230 

27 

44 

12 

i4 

41 

130 

75 

150 

225 

57 

44 

13 

44 

.0246 

3,450 

6,715 

150 

6,865 

50 

"White  pine. 

14 

44 

*k 

1,860 

3,555 

150 

3,705 

50 

44 

15 

4 

44 

2,000 

4,147 

150 

4,297 

46 

41 

16 

4 

** 

2,400 

8,580 

150 

8,730 

27 

44 

17 

4 

.0440 

300 

395 

150 

545 

55 

Hardwoods. 

18 

300 

790 

150 

940 

32 

•• 

19 

4 

44 

300 

400 

150 

550 

54 

i* 

20 

4~ 

fci 

160 

120 

150 

270 

59 

" 

21 

4 

.0242 

1,300 

3,160 

150 

3,310 

39 

White  pine. 

?2 

" 

180 

120 

150 

270 

66 

Cutover. 

23 

4 

4* 

900 

1,610 

150 

1,760 

51 

White  pine. 

24 

4 

500 

1,040 

150 

1,190 

42 

25 

4 

44 

750 

1,240 

150 

1.390 

54 

44 

26 

44 

200 

160 

150 

310 

64 

Cutover. 

27 

4 

44 

1,300 

5,210 

150 

5,360 

24 

White  pine. 

28 

1 

44 

1,200 

5,530 

150 

5,680 

21 

29 

4 

44 

1,300 

4.740 

150 

4,890 

27 

4 

30 

44 

1,200 

2,054 

150 

2,204 

54 

4 

31 

4 

44 

1,200 

5,425 

150 

5,575 

21 

4 

32 

4 

44 

1,200 

3,875 

150 

4,025 

29 

4 

33 

4 

44 

1,300 

4,340 

150 

4,490 

29 

4 

34 

• 

44 

1,200 

5,270 

150 

5,420 

22 

4 

35 

' 

1,000 

4.414 

150 

4,564 

22 

4 

36 

4 

1,200 

5,425 

150 

5,575 

21 

4 

37 

4 

4 

1,200 

4,950 

150 

5,100 

23 

4 

38 

4 

4 

1,200 

6,510 

150 

6,660 

18 

' 

39 

4 

4 

,200 

3,160 

150 

3,  310 

36 

4 

40 

4 

4 

,200 

4,266 

150 

4,416 

27 

4 

41 

4 

1,200 

6,715 

150 

6,865 

17 

1 

42 

4 

,200 

7,110 

150 

7,260 

16 

43 

44 

4 

,200 

5.100 

150 

5,250 

23 

1 

44 

' 

750 

1,725 

150 

1,875 

40 

4 

45 

4 

4 

,000 

2,900 

150 

3,050 

32 

4 

46 

4 

,200 

3,190 

150 

3,340 

36 

4 

47 

4 

4 

,113 

1,645 

150 

1,795 

62 

4 

48 

4 

4 

,200 

4,205 

150 

4,355 

27 

4 

49 

4 

1,200 

6,620 

l&O 

6,770 

17 

4 

50 

1,200 

7,400 

150 

7.550 

16 

4 

51 

4 

4 

1,200 

5,800 

150 

5,950 

22 

52 

4 

1,200 

4,544 

150 

4,694 

25 

4 

53 

4 

4 

1,200 

5,800 

150 

5,950 

22 

4 

54 

* 

4 

1,200 

6,150 

150 

6,300 

19 

4 

55 

4 

44 

1,200 

7,250 

150 

7,400 

16 

4 

56 

4 

44 

1,200 

4,930 

150 

5,080 

23 

4 

57 

1,200 

5,702 

150 

5,852 

20 

THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN. 


County  B. 


Tax 

ESTIMATED  TRUE  VAL. 

Ratio  of 

Case 
No. 

Acres. 

Kate 

IQOQ 

Assessed 
value. 

assessed 
to  true 

Kemarks. 

lyuy  . 

Timb'r 

Land. 

Total. 

value. 

1 

40 

$0.0461 

$     350 

$    460 

$    240 

$    700 

Per  cent. 
50 

Hemlock-hardwood. 

2 

41 

.0308 

350 

550 

280 

830 

42 

Hemlock-hard  wood  . 

3 

28D 

.0246 

1,470 

2,800 

1,400 

4,200 

35 

Hemlock-hard  wood. 

4 

160 

.0308 

560 

4,800 

800 

4,800 

12 

Lumber  company  controls 

politics. 

5 

40 

.0354 

360 

760 

240 

1,000 

36 

Cedar,  hemlock  tamarack, 

and  balsam. 

6 

40 

.0354 

360 

1,060 

240 

1,300 

28 

Hemlock,  cedar,  tamarack, 

balsam. 

7 

40 

.0354 

360 

1,010 

240 

1,250 

29 

Hemlock,  cedar,  and  tam- 

arac. 

8 

40 

.0224 

450 

1,760 

240 

2,000 

22 

Hemlock  and  balsam. 

9 

40 

.0224 

360 

1,200 

200 

1,400 

26 

Cedar,  hemlock     and   bal- 

sam. 

10 

40 

.0224 

400 

2,340 

160 

2,40J 

16 

Lumber  company  controls 

politics. 

11 

140 

.0300 

2,090 

5,020 

980 

6,000 

33 

Hemlock-hardwood. 

12 

40 

.0300 

680 

730 

400 

1,130 

60 

Hemlock-hardwood. 

13 

40 

.0300 

P60 

1,100 

400 

1,500 

44 

Hemlock-hardwood. 

14 

40 

.0300 

240 

210 

190 

400 

60 

Swampy  tract. 

15 

40 

.0300 

120 

400 

200 

600 

20 

Swampy  tract. 

16 

50.9 

.0253 

170 

500 

250 

750. 

22 

Hemlock  -  hardwood,  little 

pine,  and  spruce. 

17 

40 

.0253 

280 

800 

320 

1,120 

25 

Assessor  is  woods  foreman 

of  company. 

18 

40 

.0253 

180 

275 

200 

475 

40 

Tamarack  and  hemlock. 

19 

40 

.0253 

200 

220 

280 

500 

40 

Hemlock-hardwood. 

30 


THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN. 


County  C. 


Case 

Tax  rate 

Assessed 

ESTII 

MATED  1 

VALUE 

FRUE 

Ratio  Of 

assessed 

No. 

Acres. 

1909. 

valuer 

Timb'r 

Land. 

Total. 

to  true 
value. 

Remarks. 

Per  cent. 

1 

160 

$0.0334 

$1,080 

$3.000 

$1,000 

$4,000 

27 

Sold  for  $4,  000  3-'  10. 

2 

40 

160 

320 

120 

.  440 

Swamp  land. 

Sold  Sept.    1907.    Consider- 

3 

160 

" 

1,140 

4,460 

640 

5,100 

22 

able  cut  but  still  assessed 

$1,140. 

4 

»« 

260 

400 

400 

65 

Held  at  present  for  $400. 

5 

40 

.03905 

300 

'"690" 

160 

850 

35 

Sold  for  $500  1908. 

6 

40 

200 

300 

280 

580 

38 

These  three  cases  are  based 

7 

40 

210 

500 

280 

780 

27 

on  actual  sales  of  timber 

8 

40 

210 

235 

280 

515 

40 

during  1909. 

9 

80 

1,100 

1,570 

560 

2,  130  ? 

54 

Hemlock-hardwoods. 

10 

80 

200 

280 

280 

70 

Cut-over  and  burned,  light. 

11 
12 

80 
80 

.0433 

600 
550 

400 
255 

640 
720 

1,040 
975 

58 
56 

Partly  cut  and  burned. 
Partly  cut  and  burned. 

13 

40 

250 

300 

300 

83 

Cut-over  and  windfall. 

14 

40 

350 

500 

300 

800 

44 

15 

160 

950 

1,500 

1,280 

2,780 

34 

Exceptionally  low. 

16 

40 

.0412 

400 

500 

240 

740 

54 

17 

40 

.0433 

400 

380 

120 

500 

80 

Non-resident  holder.  Cedar 

swamp. 

18 

40 

.0412 

400 

500 

240 

740 

54 

Partial  stand.    Hardwoods. 

19 

40 

400 

510 

240 

750 

53 

Partial  stand.    Hardwoods. 

20 

40 

.0213 

250 

200 

200 

400 

62 

Only  pulp  and  cordwood. 

21 

40 

250 

200 

200 

400 

62 

Only  pulp  and  cordwood. 

22 

40 

375 

280 

320 

600 

62 

Held  for  $600  by  land  Co. 

23 

40 

600 

920 

280 

1,200 

50 

24 

40 

150 

200 

300 

500 

30 

25 

40 

150 

50 

300 

350 

43 

Only   10   M    hemlock    and 

pulpwood. 

26 

40 

'  ' 

350 

330 

120 

450 

78 

Mostly  swamp.    Some  tim- 

ber, posts,  cord  •  ood,  etc. 

27 

40 

'  * 

160 

190 

160 

350 

45 

Swampy.    Posts,  etc.  Some 

pine,  tamarack,  etc. 

28 

40 

.0334 

160 

440 

120 

560 

30 

Swampy.    Posts,  etc.   Some 

pine,  tamarack,  etc. 

29 

40 

'  ' 

275 

410 

320 

730 

31 

30 

40 

.0213 

400 

940 

160 

1,200 

83 

31 

40 

.0  43 

175 

400 

160 

560 

31 

32 

240 

.0412 

2,300 

5,430 

1,220 

6,650 

34 

Brought  $6.650  in  1906  and 

was  profitable  purchase. 

THE  TAXATION  OP  FOREST  LANDS  IN  WISCONSIN. 


O  1 

ol 


County  D. 


•Case 
No. 

Acres. 

Tax  rate 
1909. 

Assessed 
value. 

ESTIMATED    TRUE 
VALUE. 

Ratio   of 
assessed 
to  true 
value. 

Remarks. 

Timb'r 

Land. 

Total. 

Per  cent. 

1 

40 

$0.0221 

$    360 

$    177 

8    240 

1    417 

86.2 

Hardwoods. 

2 

40 

330 

170 

240 

410 

80.5 

Hardwoods  . 

3 

40 

400 

411 

240 

651 

61.4 

Hemlock  and  Hard  woods. 

4 

40 

'  ' 

390 

514 

240 

754 

51.7 

5 

40 

4 

340 

544 

240 

784 

43.4 

6 

40 

380 

377 

240 

617 

61.6 

7 

40 

fc 

370 

205 

240 

445 

83.1 

8 

40 

* 

370 

570 

240 

810 

45.7 

9 

40 

4 

340 

563 

240 

803 

42.3 

10 

40 

'  ' 

370 

502 

240 

742 

49.9 

11 

40 

'  * 

380 

550 

240 

790 

48.1 

12 

40 

.0332 

370 

6U 

240 

851 

43.5 

13 

40 

340 

567 

240 

807 

42.1 

14 

40 

330 

272 

240 

512 

64.5 

15 

40 

*  ' 

340 

524 

240 

764 

44.5 

Id 

480 

.0221 

6,340 

10,082 

2,880 

12,962 

48.9 

Hardwoods. 

17 

640 

6,080 

4,705 

3,840 

8.545 

71.2 

Pine  and  Hardwoods. 

18 

040 

.0275 

6,740 

10,  875 

3,840 

14,719 

45.8 

19 

640 

6,280 

5,474 

3,840 

9,314 

67.4 

it      1  1            tt 

20 

640 

.0221 

5,910 

5,006 

3,840 

8,846 

66.8 

t  t               4  t                              t  t 

21 

480 

•  ' 

4,650 

4,800 

2,880 

7,680 

60.5 

Hardwoods. 

22 

610 

'  ' 

5,850 

2,804 

3,840 

6,644 

88.0 

23 

40 

.0376 

24<i 

240 

240 

1HO.O 

Cut  over. 

County  E. 


ESTH 

kTATED  1 

[•RUE 

rp~  __ 

VALUE. 

Ratio  of 

Case 

lax 

Assessed 

asses  s  e  d 

No. 

Acres  . 

rate 

value. 

to  true 

Remarks. 

1909. 

Tim- 
ber. 

Land. 

Total. 

value. 

Per  cent. 

1 

80 

SO  .0300 

$410 

SI,  280 

$720 

$2,000 

20 

Hemlock  and  hardwoods. 

2 

40 

190 

300 

200 

500 

38 

Pine  and  basswood. 

3 

80 

*' 

240 

400 

400 

60 

Badly  burned. 

4 

40 

" 

320 

580 

200 

780 

41 

Hemlock,     hardwood     and 

some  pine. 

5 

80 

480 

1,250 

200 

1,450 

33 

Sandy  tract  of  pine, 

6 

40 

.0260 

120 

60 

280 

340 

35 

Little  hemlock  and  birch. 

7 

80 

500 

1,350 

250 

1,600 

31 

Hemlock  and  hardwood. 

8 

40 

.0440 

160 

1,000 

200 

1,200 

14 

Assessor     probably     never 

saw. 

9 

40 

" 

160 

1,100 

200 

1,300 

12 

Assessor     probably     never 

saw. 

10 

40 

•« 

160 

100 

220 

320 

50 

Burned. 

11 

40 

" 

450 

1,120 

280 

1,400 

32 

Hemlock  and  hardwood. 

12 

80 

.0500 

360 

1,200 

400 

1,600 

23 

Hemlock  and  hardwood. 

13 

40 

.0344 

555 

1,520 

280 

1,800 

31 

Hardwood,  a  little  pine  and 

hemlock. 

14 

40 

" 

265 

85 

240 

325 

81 

Little   hemlock  and   hard- 

wood. 

15 

492 

.0234 

5,239 

7  500 

7,500 

15,000 

35 

White  pine. 

32 


THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN. 


County  F. 


Case 
No. 

Acres. 

Tax  rate 
1909. 

Assessed 
value. 

Estimated 
true  value 

Ratio  of 
assessed  to 
true  value 

Amount 
of  all 
taxes. 

Remarks. 

Per  cent. 

1 

40 

$0.0514 

$110 

11.080 

10.2 

$5.65 

Norway  pine. 

2 

40 

100 

2,580 

3.9 

5.14 

**           .* 

3 

42.80 

150 

1,045 

14.4 

7.71 

**           *  . 

4 

31 

120 

1,062 

11.3 

6.17 

**           •* 

5 

45.41 

150 

1.091 

13.7 

7.71 

"          •' 

6 

40 

180 

2,080 

8.7 

P.  25 

White  and  Norway  pine. 

7 

45.92 

200 

4,091 

4.9 

10.28 

fc»                                        fcfc                              4. 

8 

40 

200 

4.C80 

4.9 

10.28 

"                                        "                              " 

9 

40 

150 

4.080 

3.7 

7.71 

"                                        "                               •' 

10 

40 

300 

2,080 

14.4 

15  42 

White  pine. 

11 

39.90 

150 

3,080 

4.9 

7.71 

White  and  Norway  pine. 

12 

34.50 

450 

5,069 

8.9 

23.17 

**                           fci                     *. 

13 

40 

123 

2,080 

6.0 

6.43 

Norway  pine. 

14 

40 

225 

2.080 

10.8 

11.57 

k 

15 

40 

75 

580 

12.9 

3.86 

• 

16 

40 

100 

1,080 

9.3 

5.14 

4 

17 

40 

300 

1,580 

19.0 

15.42 

* 

18 

40 

150 

1.580 

9.5 

7.71 

19 

31.80 

100 

1,563 

6.4 

5.14 

• 

20 

40 

200 

2,080 

9.6 

10.28 

White  and  Norway  pine. 

21 

40 

200 

4,080 

4.9 

10.28 

'•              "           '• 

22 

31.80 

110 

2,063 

5.3 

5.65 

"              "           " 

23 

46.80 

210 

1,593 

13.2 

10.79 

Norway  pine. 

24 

40 

400 

4.080 

9.8 

20.56 

White 

25 

40 

700 

5,080 

13.8 

35.98 

White  and  Norway  pine. 

26 

40 

778 

3.080 

25.3 

39.98 

"              "          " 

27 

40 

1,100 

4,080 

27.0 

56.54 

14              44           i< 

28 

40 

700 

4,OSO 

17.2 

35.98 

"              "           " 

29 

40 

700 

2,080 

33.7 

35.98 

"              "          " 

30 

40 

200 

1,580 

12.7 

10.28 

"              "          " 

31 

40 

550 

4,080 

13.5 

28.27 

"              "          " 

32 

40 

1,000 

5,080 

19.7 

51.40 

**              1*           K 

33 

40 

500 

3,080 

16.2 

25.70 

White  pine. 

34 

40 

400 

2,5SO 

15.5 

20.56 

(•                *«. 

35 

40 

1,000 

3,080 

32.5 

51.40 

44                            it 

36 

40 

800 

3,  080 

26.0 

41.12 

**                  ifc 

37 

40 

1,000 

5,080 

19.7 

51.40 

White  and  Norway  pine. 

38 

40 

700 

5,08) 

13.8 

35.98 

White  pine. 

39 

40 

700 

3,08J 

22.7 

35.98 

*4                t4 

40 

40 

500 

2.580 

19.4 

25.70 

4fc                      44 

41 

40 

500 

3.080 

16.2 

25.70 

White  and  Norway  pine. 

42 

40 

700 

3.080 

90   7 

35.95 

44                      b4                           fcfc                           t. 

43 

40 

250 

3,080 

8.1 

12.85 

(4                     44                           Ci                           44 

44 

40 

125 

1,580 

7.9 

6.43 

Norway  pine. 

45 

40 

225 

6,  180 

3.6 

11.57 

White  and  Norway  pine. 

46 

40 

125 

430 

29.1 

6.43 

White  and  Norway  pine  and 

tamarack. 

47 

40 

1,100 

7,080 

15.5 

56.54 

White  and  Norway  pine. 

48 

40 

150 

2,080 

7.2 

7.71 

*                                          * 

49 

40 

250 

3.050 

8.1 

12.85 

*                                          fc 

50 

40 

1,000 

5,080 

19.7 

51.40 

4                                                        4 

51 

40 

1,050 

8.080 

13.0 

53.97 

*                                                        fc 

52 

40 

900 

5,080 

17.7 

46.26 

4                                                        * 

53 

40 

425 

3,080 

13.8 

21.85 

Norway  pine. 

54 

40 

400 

2.080 

19.2 

20.56 

»4                           44 

55 

40 

825 

5,080 

16.2 

42.41 

White  and  Norway  pine. 

56 

40 

180 

5,080 

3.5 

9.25 

Norway  pine. 

57 

55 

750 

6,110 

12.3 

38.55 

4*                           4« 

58 

52.10 

850 

5,104 

16.7 

43.69 

4»                           44 

59 

40 

800 

5,080 

15.7 

.  41.12 

44                               44 

60 

40 

250 

2,030 

12.3 

12.85 

Norway  pine  and  tamarack 

61 

40 

800 

4,080 

19.6 

41.12 

Norway  pine. 

62 

40 

1,000 

6,080 

16.4 

51.40 

White  and  Norway  pine. 

63 

40 

1,000 

5,080 

19.7 

51.40 

4.                   Ik                           ..                           14 

64 

40 

600 

3,080 

19.5 

30.84 

Norway  pine. 

65 

53.10 

1.000 

7,106 

14.1 

51.40 

Norway  pine  and  spruce. 

66 

54.10 

500 

5,103 

9.8 

25.70 

Norway  pine. 

67 

24.40 

300 

2,049 

14.6 

15.42 

44                           41 

68 

45 

40 

1,590 

2.5 

2.06 

44                        44 

THE  TAXATION  or1  FOREST  LANDS  IN  WISCONSIN. 


33 


County  .F— Continued. 


Case 
No. 

Acres. 

Tax  rate 
1909. 

Assessed 
value. 

Estimated 
true  value. 

Ratio  of 
assessed  to 
',  rue  value. 

Amount 
of  all 
taxes. 

Remarks. 

69 

40 

$9.0514 

$40 

$1.080 

Per  cent. 
3.7 

$2.06 

Norway  pine. 

70 

23  50 

" 

160 

1,547 

9.7 

7.71 

White  pine. 

71 

40 

*k 

600 

6,080 

9.9 

30.84 

"         *• 

72 

40 

50 

2,080 

2.4 

2.57 

Norway  pine. 

73 

40 

4i 

7.) 

4.080 

1.7 

3.60 

*4 

74 

40 

** 

50 

1.580 

3.2 

2.57 

"           " 

75 

32.80 

" 

* 

150 

4,065 

3.7 

7.71 

White  and  Norway  pine. 

76 

50.60 

120 

1.601 

7.5 

6.17 

n                    it                    th 

77 

40 

** 

60 

1.580 

3.8 

3.08 

Norway  pine. 

78 

40 

k' 

550 

6,080 

9.1 

28.27 

4i                               b» 

79 

40 

.0390 

150 

960 

15.6 

5.85 

Hemlock  and  hardwood. 

80 

40 

445 

1,117 

39.8 

17.36 

Hemlock  and  hardwood,   al- 

so some  pine. 

81 

40 

*w 

978 

1,080 

90.6 

38.16 

White  pine,  partly  cut. 

82 

40 

715 

830 

86.1 

27.89 

**                 fc*                    hi                tt 

83 

40 

1.100 

2,080 

52.9 

42.90 

84 

40 

" 

1.320 

2.080 

63.5 

51.48 

White  pine. 

85 

40 

1.375 

2.080 

66.1 

53.63 

White  and  Norway  pine. 

86 

40 

* 

990 

2.080 

47.6 

33.61 

"                *fc                     tt                    tt 

87 

30 

" 

3.600 

1,960 

183.7 

140.40 

White  pine  and  hemlock. 

88 

39 

** 

3,600 

2.878 

125.1 

140.40 

"         "       '•           " 

89 

40 

4t 

125 

1,118 

11.2 

4.85 

Basswood,  hemlock  and  ma- 

ple. 

90 

40 

tfc 

490 

580 

84.5 

19.11 

White  pine. 

91 

40 

4 

575 

610 

94.2 

22.43 

Hardwood. 

92 

40 

6 

620 

480 

129.2 

24.18 

Tamarack  and  hardwood- 

93 

29.44 

600 

705 

85.1 

23.40 

Hemlock  and  hardwood^ 

94 

18.40 

fc 

440 

563 

78.2 

17.16 

95 

10.18 

' 

220 

202 

108.9 

8.58 

"           "              " 

96 

37.92 

" 

770 

1,042 

73.9 

30.03 

"                         "                                4t 

97 

26.80 

•• 

525 

633 

83.1 

20.48 

White   pine,    hemlock    and 

hardwood. 

98 

15.95 

" 

330 

311 

106.1 

12.87 

Hemlock  and  hardwood. 

99 

44.56 

** 

1,320 

1,747 

75.6 

51.48 

White    pine,    hemlock    and 

hardwood. 

100 

32.70 

*fc 

715 

1.406 

50.9 

27.89 

White    pine,    hemlock    and 

hardwood. 

101 

11.40 

44 

610 

576 

105.9 

23.79 

White    pine,    hemlock    and 

hardwood. 

102 

33.60 

" 

5t50 

560 

104.1 

21.84 

Hemlock  and  hardwood. 

103 

42.16 

" 

825 

985 

83.8 

32.18 

Hemlock  and  hardwood. 

104 

60.20 

" 

905 

1,271 

71.2 

35.30 

Hemlock,     hardwood      and 

white  pine. 

105 

43.10 

" 

550 

580 

94.8 

21.45 

Hemlock  and  hardwood. 

106 

49.10 

fct 

1,265 

1,682 

75.2 

49.37 

Hemlock  and  hardwood. 

107 

3.09 

" 

25 

46 

54.3 

.98 

Tamarack. 

108 

•40 

" 

550 

996 

55.2 

21.45 

Hemlock,     hardwood     and 

whit    pine. 

109 

40 

" 

880 

1,087 

81.0 

34.32 

Hemlock,      hardwood     and 

white  pine. 

110 

40 

'• 

990 

1,309 

75.6 

38.61 

Hemlock,     hardwood      and 

white  pine. 

111 

40 

" 

880 

790 

111.4 

34.32 

Hemlock,     hardwood     and 

white  pine. 

112 

40 

" 

550 

530 

103.8 

21.45 

Hemlock  and  hardwood. 

113 

23.80 

'• 

605 

848 

71.3 

23.60 

Hemlock  and  hardwood. 

114 

52.94 

" 

770 

1,038 

74.2 

32.03 

Hemlock  and  hardwood. 

115 

40 

" 

1,100 

1,592 

69.1 

42.90 

Hemlock,     hardwood     and! 

white  pine. 

116 

40 

" 

200 

1,850 

10.8 

7.20 

Hemlock,     hardwood      and 

white  pine. 

117 

40 

" 

200 

1,526 

13.1 

7.20 

Hemlock,     hardwood      and 

white  pine. 

118 

40 

" 

200 

1,639 

12.2 

7.20 

Hemlock,     hardwood     and 

white  pine. 

119 

40 

" 

200 

1,503 

13.3 

7.20 

Hemlock,     hardwood     and 

white  pine. 

120 

40 

" 

935 

1,437 

65.1 

36.47 

Hemlock,     hardwood      and 

white  pine. 

THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN. 


County  jF7— Continued. 


Case 
No. 

Acres. 

Tax  rate 
1909. 

Assessed 
value. 

Estimated 
true  value. 

Ratio  of 
assessed 
to  true 
value. 

Amount 
of  all 
taxes. 

Remarks. 

121 

40 

$0.0390 

$1,045 

$1.113 

Per  cent. 
93.9 

$40.76 

Hemlock,      hardwood      and 

white  pine. 

122 

40 

fc* 

965 

1,055 

91.6 

37.64 

Hemlock,      hardwood      and 

white  pine. 

123 

36 

200 

318 

62.9 

7.20 

Hemlock,     hardwood      and 

white  pine. 

124 

38.70 

*• 

225 

950 

23.7 

8.10 

Hemlock,      hardwood      and 

white  pine. 

125 

40 

600 

892 

67.3 

23.40 

Hemlock,      hardwood      and 

white  pine. 

126 

40 

1,265 

1,574 

80.4 

49.44 

Hemlock,      hardwood      and 

white  pine. 

127 

40 

kb 

650 

782 

83.1 

25.35 

Hemlock,      hardwood      and 

white  pine. 

128 

40 

" 

470 

835 

56.3 

18.33 

Hemlock,      hardwood      and 

whitn  pine. 

129 

40 

700 

1,003 

69.8 

27.30 

Hemlock,      hardwood     and 

white  pine. 

130 

3i5.30 

" 

620 

844 

73.5 

24.18 

Hemlock,      hardwood      and 

white  pine. 

131 

24.50 

•' 

60) 

621 

93.2 

23.40 

Hemlock,      hardwood      and 

white  pine. 

132 

4965 

" 

2,910 

3,642 

80.7 

114.66 

White  pine. 

133 

40 

.0360 

210 

1.490 

14.1 

7.56 

Hemlook  and  hardwood. 

134 

40 

300 

1,450 

20.7 

10.80 

135 

14.15 

75 

508 

14.8 

2.70 

136 

58.60 

250 

1,627 

24  3 

9.00 

137 

19.50 

70 

268 

2ti.l 

2.52 

138 

40 

200 

587 

34.1 

7.20 

139 

41.P.5 

53;) 

1.44'} 

36.7 

19.08 

140 

42.04 

545 

584 

tH.3 

19.62 

141 

42.73 

550 

485 

113.4 

19.80 

142 

43.42 

5J5 

1.175 

48.1 

L>0.34 

143 

40 

5H5 

417 

135.5 

20.34 

144 

40 

525 

1,005 

52.2 

18.90 

145 

40 

525 

837 

62.7 

18.90 

In  the  tables  for  counties  G,  C,  and  H,  which  follow,  will  be  found 
the  assessed  value  for  the  years  1907,  1908  and  1909,  and  the  estimated 
true  value  in  1909  of  certain  timbered  descriptions  in  addition  to  those 
given  in  the  preceding  tables.  The  assessed  values  for  three  years  are 
included  in  these  tables,  for  the  purpose  of  showing  that  it  is  not  an 
uncommon  occurrence  for  an  assessor  to  copy  from  the  assessment  roll 
for  the  previous  year,  and  that  even  where  an  increase  in  assessment  is 
found,  it  has  been  made  in  the  most  arbitrary  manner  imaginable.  In 
County  H  it  will  be  noted  that  not  a  single  increase  has  been  made 
during  the  three  years  in  the  assessed  value  of  the  tracts  given,  not- 
withstanding the  fact  that  the  ratio  of  assessed  to  true  value  varies 
from  4.2  to  116.1  per  cent. 


THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN. 


35 


County  G. 

Assessed  value  and  total  taxes  for  1907,  1908,  1909,  per  forty  of  representative  tracts  of  timber- 
land,  and  the  estimated  true  value  and  ratio  of  assessed  to  true  value  in  1909. 


1907. 

1908. 

1909. 

ESTIMATED  TRUE  VALUE. 

Ratio 
assessed 
to  true 
value  in 
1909. 

Assessed 
value. 

Total 
tax. 

Assessed 
value. 

Total 
tax. 

Assessed 
value. 

Total 
tax. 

j 
Timber. 

Land. 

Total. 

$75 

$3.07 

$300 

$4.71 

$300 

$5.19 

$1,184 

$58 

$1,242 

24.1 

75 

3.07 

300 

4.71 

309 

5.19 

1,016 

75 

1,091 

27.5 

75 

3.07 

300 

4.71 

300 

5.19 

202 

40 

242 

123.7 

75 

3.07 

300 

4.71 

300 

5.19 

232 

40 

2i2 

110.1 

75 

3.07 

300 

4.71 

300 

5'19 

1.087 

67 

1,154 

26.0 

100 

4.10 

300 

4.71 

300 

5.19 

642 

40 

682 

44.0 

100 

4.10 

300 

4.71 

300 

5.19 

447 

76 

4,553 

6.6 

100 

4.10 

300 

4.71 

300 

5.19 

254 

40 

?94 

102.0 

75 

3.07 

300 

4.71 

300 

5.19 

274 

43 

313 

y5.8 

100 

4.10 

300 

4.71 

300 

5.19 

455 

40 

495 

60.6 

100 

4  10 

300 

4  71 

300 

5.19 

351 

40 

391 

76.6 

100 

4.10 

300 

4.71 

300 

5.19 

750 

100 

850 

35.3 

100 

4.10 

300 

4.71 

300 

5.19 

993 

112 

1,105 

27.1 

75 

3.07 

300 

4.71 

300 

5.19 

564 

40 

604 

49.7 

100 

4.10 

150 

2.35 

150 

2.60 

2-^7 

40 

267 

56.2 

125 

5.13 

300 

4.71 

300 

5.19 

502 

40 

542 

55.4 

125 

5.13 

300 

4.71 

300 

5.19 

370 

42 

412 

'  72.8 

100 

4.10 

300 

4.71 

300 

5.19 

275 

40 

310 

96.8 

75 

3.07 

350 

5.4^ 

350 

6.06 

285 

65 

3=>0 

100.0 

100 

4.10 

300 

4.71 

300 

5.19 

821 

90 

910 

33.0 

100 

4.10 

300 

4.71 

360 

5.19 

671 

40 

710 

42.3 

150 

(5.15 

250 

3.92 

250 

4.35 

188 

35 

223 

111.9 

125 

5.13 

300 

4.71 

300 

5.19 

819 

114 

933 

32.2 

75 

3.07 

200 

3.14 

300 

5.19 

1,230 

225 

1,455 

20.6 

75 

3.07 

200 

3.14 

200 

3.46 

170 

60 

230 

86.7 

100 

4.10 

100 

1.57 

250 

4.35 

692 

44 

736 

33.9 

100 

4.10 

100 

1.57 

250 

4.35 

389 

66 

455 

54.9 

100 

4.10 

100 

1.57 

250 

4.35 

677 

40 

717 

34.9 

100 

4.10 

100 

1.57 

250 

4.35 

764 

40 

804 

31.1 

100 

4.10 

100 

1.57 

150 

2.60 

109 

40 

149 

100.3 

75 

3.07 

300 

4.71 

300 

5.19 

397 

80 

477 

62.9 

75 

3.07 

300 

4.71 

300 

5.19 

247 

18 

265 

113.2 

75 

3.07 

300 

4.71 

300 

5.19 

440 

56 

496 

60.4 

100 

4.10 

200 

3.14 

200 

3.46 

793 

80 

873 

22.9 

75 

3.07 

300 

4.71 

400 

13.84 

1,217 

180 

1.397 

28.6 

75 

3.07 

hOO 

4.71 

300 

5.19 

338 

55 

393 

76.2 

75 

3  07 

200 

3.14 

250 

4.35 

728 

147 

875 

28.6 

75 

3.07 

200 

3.14 

250 

4.35 

973 

72 

1,045 

23.9 

75 

3.07 

200 

3.14 

300 

5.19 

546 

90 

636 

47.2 

75 

3.07 

200 

3.14 

250 

4.35 

715 

84 

799 

31.3 

100 

4.10 

100 

1.57 

300 

5.19 

828 

106 

934 

32.1 

100 

4.10 

100 

1.57 

300 

5.19 

572 

40 

610 

49.1 

100 

4.10 

300 

4.71 

300' 

5.19 

159 

80 

239 

125.5 

100 

4.10 

300 

4.71 

300 

5.19 

584 

40 

624 

48.1 

40 

1.64 

300 

4.71 

300 

5.19 

1,110 

40 

1,150 

26.1 

100 

4.10 

300 

4.71    ' 

300 

5.19 

803 

72 

875 

34.3 

75 

3.07 

100 

1.57 

100 

1.73 

533 

96 

629 

15.9 

75 

3.07 

150 

2.35 

150 

2.60 

609 

96 

715 

21.0 

75 

3.07 

300 

4.71 

250 

5.19 

1,242 

120 

1,362 

18.4 

75 

3.07 

400 

6.28 

300 

6.92 

1,286 

60 

'  1,346 

22.3 

100 

4.10 

75 

1.18 

75 

1.30 

395 

15 

410 

18.3 

36 


THE  TAXATION  OP  FOREST  LANDS  IN  WISCONSIN. 


County  O. 

Assessed  value  and  total  taxes  for  1907, 1908, 1909,  per  forty  of  representative  tracts  of  tim- 
berland,  and  the  estimated  true  value  and  ratio  of  assessed  to  true  value  in  1909. 


1907. 

1908. 

1909. 

ESTIMATED  TRUE  VALUE. 

Ratio 

assessed 

to  true 

Assessed 
value. 

Total 
tax. 

Assessed 
value. 

Total 
tax. 

Assessed 
value. 

Total 
tax. 

Timber. 

Land. 

Total. 

value 
in  1909. 

$200 

$  4.16 

$250 

$5.50 

$350 

$  7.32 

$220 

$54 

$274 

127.7 

250 

5.20 

3  9 

6.60 

325 

6.79 

682 

84 

766 

42.4 

200 

4.16 

250 

5.50 

300 

6.27 

775 

40 

815 

36  8 

225 

4.68 

250 

5'50 

300 

6.27 

837 

74 

911 

32.9 

225 

4.68 

275 

6.05 

300 

6.27 

516 

40 

556 

54.0 

225 

4.68 

275 

6.05 

300 

6.27 

1,004 

40 

1,044 

28.7 

225 

4.68 

275 

6.05 

300 

6.27 

1,111 

40 

1,151 

26  1 

225 

4.68 

275 

6.05 

300 

6.27 

553 

40 

593 

50.6 

225 

4.68 

275 

6.05 

300 

6.27 

1,024 

40 

1,064 

28.2 

225 

4.68 

275 

6.05 

300 

6.27 

568 

40 

608 

49.3 

225 

4.68 

275 

6.05 

300 

6.27 

411 

40 

451 

66.5 

130 

2.70 

130 

2.86 

150 

3.14 

246 

37 

283 

53.0 

130 

2.70 

130 

2.86 

150 

3.14 

90 

37 

127 

118.1 

130 

2.70 

130 

2.86 

150 

3.14 

132 

120 

252 

59.5 

130 

2.70 

130 

2.86 

150 

3.14 

68 

40 

108 

138.9 

130 

2.70 

130 

2.86 

200 

4.18 

40 

160 

200 

99.9 

200 

4.16 

250 

5.50 

300 

6.27 

124 

160 

284 

105.6 

275 

5.72 

300 

6.60 

175 

3.66 

471 

40 

511 

34.2 

150 

3.12 

150 

3.30 

175 

3.66 

597 

40 

637 

27.5 

150 

3.12 

150 

3.30 

150 

3.14 

793 

116 

909 

16.5 

150 

3.12 

150 

3.30 

150 

3.14 

616 

116 

732 

20.5 

150 

3.12 

150 

3.30 

150 

3.14 

603 

133 

736 

20.4 

150 

3.12 

150 

3.30 

175 

3.66 

80 

50 

113 

154  9 

225 

4.68 

275 

6.05 

300 

6.27 

173 

120 

293 

102.4 

275 

5.72 

325 

7.15 

350 

7.32 

578 

99 

677 

51.7 

250 

5.20 

300 

6.60 

325 

6.79 

301 

200 

501 

64.9 

200 

4.16 

250 

5.50 

275 

5.75 

155 

56 

211 

130.3 

225 

4.68 

275 

6.05 

325 

6.79 

720 

56 

776 

41.9 

225 

4.68 

250 

5.50 

325 

6.79 

1,269 

64 

1,269 

25.6 

175 

3.64 

200 

4.40 

225 

4.70 

693 

40 

733 

30.7 

75 

1.56 

75 

1.65 

150 

3.14 

407 

66 

473 

31.7 

130 

2.70 

130 

2.86 

150 

3.14 

274 

40 

314 

47.8 

130 

2.70 

130 

2.86 

150 

3.14 

697 

40 

737 

20.4 

130 

2.70 

130 

2.86 

150 

3.14 

340 

40 

380 

39.4 

130 

2.70 

130 

2.86 

150 

3.14 

5 

30 

35 

428.6 

130 

2.70 

130 

2.86 

150 

3.14 

256 

40 

296 

50.7 

225 

4.68 

130 

2:86 

325 

6.79 

261 

40 

301 

107.9 

130 

2.70 

130 

2.86 

150 

3.14 

89 

40 

129 

116.3 

225 

4.68 

225 

4.95 

275 

5.75 

288 

117 

405 

67.9 

130 

2.70 

130 

2.86 

150 

3.14 

394 

102 

496 

30.2 

THE  TAXATION  OP  FOREST  LANDS  IN  WISCONSIN. 


37 


County  H. 

Assessed  value  and  total  taxes  for  1907,  1908,  1909,  per  forty  of  representative   tracts  of  tim- 
berland,  and  the  estimated  true  value  and  ratio  of  assessed  to  true  value  in  1909. 


1907. 

1908. 

1909. 

ESTIMATED  TRUE  VALUE. 

Ratio 
assessed 
to  true 
value 
in  1909. 

Assessed 
value. 

Total 
tax. 

Assessed 
value. 

Total 
tax. 

Assessed 
value. 

Total 
tax. 

Timber. 

Land. 

Total. 

$60 

$3.01 

$60 

$3.15 

$60 

$3.17 

$1,301 

$120 

$1,421 

4.2 

56 

2.81 

56 

2.94 

56 

2.96 

123 

70 

193 

29.0 

56 

2.81 

56 

2.94 

56 

2.96 

1,093 

40 

1,133 

4.9 

63 

3.16 

63 

3.31 

63 

3.33 

1,255 

90 

1,340 

4.7 

37 

1.85 

37 

1.95 

37 

1.95 

30 

25 

55 

67.3 

47 

2.35 

47 

2.47 

47 

2.48 

45 

27 

72 

65.3 

41 

2.05 

41 

2.15 

41 

2.16 

46 

40 

86 

47.7 

78 

3.91 

78 

4.09 

78 

4.12 

543 

100 

643 

12.1 

61 

3.06 

61 

3.20 

61 

3.22 

10 

60 

70 

87.1 

40 

2.00 

40 

2.10 

40 

2.11 

10 

40 

50 

80.0 

47 

2.35 

47 

2.47 

47 

2.48 

8 

38 

46 

102.2 

25 

1.25 

25 

1.31 

25 

1.32 

24 

23 

47 

53.2 

50 

2.51 

50 

2.63 

50 

2.64 

392 

40 

432 

11.6 

72 

3.61 

72 

3.79 

72 

3.80 

10 

52 

62 

116.1 

50 

2.51 

50 

2.63 

50 

2.64 

480 

49 

520 

9.6 

50 

2.51 

50 

2.63 

50 

2.64 

500 

80 

580 

8.6 

50 

2.51 

50 

2.63 

50 

2.64 

180 

40 

220 

22.7 

60 

2.51 

50 

2.63 

50 

2.64 

181 

40 

221 

22.6 

50 

2.51 

50 

2.63 

50 

2.64 

110 

40 

150 

33.3 

80 

4.01 

80 

4.20 

80 

4.22 

70 

40 

110 

72.7 

50 

2.51 

50 

2.63 

50 

2.64 

74 

40 

114 

43.7 

50 

2.51 

50 

2.63 

50 

2.64 

60 

40 

100 

50.0 

50 

2.51 

50 

2.63 

50 

2.64 

109 

40 

149 

33.6 

50 

2.51 

50 

2.63 

50 

2.64 

140 

40 

180 

27.8 

215 

10.77 

215 

11.29 

215 

11.33 

541 

40 

581 

37.0 

145 

7.26 

145 

7.61 

145 

7.64 

689 

40 

729 

19.9 

50 

2.51 

50 

2.63 

50 

2.64 

182 

34 

216 

23.1 

50 

2.51 

50 

2.63 

50 

2.64 

23 

40 

63 

79.4 

50 

2.51 

50 

2.63 

50 

2.64 

156 

40 

196 

25.5 

50 

2.51 

50 

2.63 

50 

2.64 

52 

40 

92 

54.1 

FO 

2.51 

50 

2.63 

50 

2.64 

33 

40 

73 

68.5 

45 

2.25 

45 

2.36 

45 

2.37 

13 

35 

48 

93.8 

Assessments  of  Cut-over  Land. 

Unlike  timbered  land,  numerous  examples  of  excessive  valuations  on 
cut-over  land  are  found.  Many  of  them  are  grossly  excessive,  as  will 
be  seen  by  a  casual  examination  of  the  following  tables  in  which  are 
given  the  assessed  and  true  values  of  certain  cut-over  tracts  in  counties 
H,  G,  and  C.  Notwithstanding  the  fact  that  most  of  these  tracts  are 
on  poor  soil,  it  is  quite  apparent  that  the  assessor  considered  them 
equal  in  value  to  the  better  grades  of  soil  in  his  district  and  valued 
them  accordingly.  It  is  not  an  infrequent  case  for  an  assessor  to  adopt 
and  follow  a  uniform  value  per  acre  for  all  cut-over  land,  without 
regard  to  its  location  or  the  quality  of  the  soil.  These  tables  plainly 
show  the  injustice  of  such  a  practice.  In  many  instances  it  amounts 
almost  to  confiscation.  For  example,  in  County  C,  the  taxes  paid  on 
a  forty  amounted  in  1907  to  11.7  per  cent  of  the  true  value  of  the 
land,  in  1908  to  15  per  cent,  and  in  1909  to  15.8  per  cent.  In  three 


38 


THE  TAXATION  OP  FOREST  LANDS  IN  WISCONSIN. 


years  the  owner  had  paid  in  taxes  on  this  forty  an  amount  equal  to 
42.5  per  cent  of  the  estimated  true  value.  In  seven  years,  at  this  rate, 
he  will  pay  in  taxes  all  the  land  is  worth.  On  another  forty  the  taxes 
amounted  in  three  years  to  39.8  per  cent  of  the  estimated  true  value  of 
the  land.  Owners  can  hardly  be  expected  to  hold  their  cut-over  land  for 
a  second  crop,  when  at  the  very  start  the  land  is  so  excessively  taxed. 


County  H. 

Assessed  value  and  total  taxes  per  forty  of  representative  tracts  of  cut-over  land  for  I) ),r ,   OS 
and  1909,  and  the  estimated  true  value  and  ratio  of  assessed  to  true  value  for  1909. 


1907. 

1908. 

1909. 

Estimated 
true  value. 

Ratio  of  as- 
sessed to  true 
value  in  1909. 

Assessed 
value. 

Total  tax. 

Assessed 
value. 

Total  tax. 

Assessed 
value. 

Total  tax. 

50 

2.51 

50 

2.63 

50 

2.64 

20 

250.0 

50 

2.51 

50 

2.63 

50 

2.64 

40 

125.0 

50 

2.51 

50 

2.63 

50 

2.64 

40 

125.0 

50 

2.51 

50 

2.63 

50 

2.64 

40 

125.0 

50 

2.51 

50 

2.63 

50 

2.64 

40 

125.0 

43 

2.15 

43 

2.26 

43 

2.27 

35 

122.9 

50 

2.51 

50 

2.63 

50 

2.64 

120 

41.7 

50 

2.51 

50 

2.63 

50 

2.64 

40 

125.0 

50 

2.51 

50 

2.63 

50 

2.64 

120 

41.7 

50 

2.51 

50 

2.63 

50 

2.64 

120 

41.7 

50 

2.51 

50 

2.63 

50 

2.64 

120 

41.7 

50 

2.51 

50 

2.63 

50 

2.64 

90 

55.6 

43 

2.15 

3 

.16 

3 

.16 

105 

2.9 

County  G. 


75 

3.07 

250 

3.92 

250 

4.35 

80 

312.5 

100 

.10 

200 

3.14 

200 

3.46 

43 

465.1 

100 

.10 

200 

3.14 

200 

3.46 

40 

500.0 

100 

.10 

200 

3.14 

200 

3.46 

43 

465.1 

50 

.05 

100 

1.57 

100 

1.73 

54 

185.2 

100 

.10 

50 

.79 

50 

.86 

31 

161.3 

100 

.10 

150 

2.35 

300 

5.19 

.40 

750.0 

100 

.10 

100 

1.57 

100 

1.73 

.  40 

250.0 

THE  TAXATION  OP  FOREST  LANDS  IN  WISCONSIN. 


39 


County  C. 


1907, 

1908. 

1909. 

Estimated 
true  value. 

Ratio  of 
assessed  10 
true  value  in 
1909. 

Assessed 
value. 

Total  tax. 

Assessed 
value. 

Total  tax. 

Assessed 
value. 

Total  tax. 

200 

4.16 

m 

5.50 

250 

5.23 

52 

480.8 

200 

4.16 

250 

5.&0 

250 

5.23 

80 

312  5 

20J 

4.16 

250 

5.50 

300 

6.27 

60 

500 

250 

5.20 

300 

6.60 

323 

6,79 

50 

650 

200 

4.16 

250 

5.50 

300 

6.27 

40 

750 

130 

2.70 

130 

2.86 

150 

3.14 

40 

375 

130 

2.70 

130 

2.86 

150 

3.14 

35 

428.6 

130 

2.70 

13J 

2.86 

150 

3.14 

18 

833.3 

130 

2.70 

130 

2.86 

150 

3.14 

40 

275 

130 

2.70 

130 

2.86 

150 

3.14 

40 

375 

130 

2.70 

130 

2.86 

200 

4.18 

36 

555.6 

130 

2.70 

130 

2.70 

200 

4.18 

40 

500 

200 

4.16 

260 

5.50 

300 

6.27 

60 

500 

130 

2.70 

130 

2.86 

150 

3.14 

80 

187.5 

130 

2.70 

130 

2.86 

150 

3.14 

80 

187.5 

130 

2.70 

130 

2.86 

150 

3.14 

40 

375 

130 

2.70 

130 

2.86 

150 

3.14 

40 

375 

130 

2  70 

130 

2.86 

150 

3.14 

66 

227.3 

130 

2.70 

130 

2.86 

150 

3.14 

68 

220.6 

130 

2.70 

130 

2.86 

150 

3.14 

70 

214.3 

130 

2.70 

1HO 

2.86 

150 

3.14 

70 

214.3 

130 

2.70 

130 

2.86 

150 

2.14 

120 

125 

130 

2.70 

130 

2.86 

150 

3.14 

40 

375 

130 

2.70 

130 

2.86 

150 

3.14 

80 

187.5 

175 

3.64 

200 

4.40 

225 

4.70 

40 

562.5 

175 

3.64 

2.K) 

4.40 

225 

4.70 

40 

562.5 

225 

4.68 

275 

6.05 

300 

6.27 

120 

250 

Assessments  of  Farm  Land. 

In  the  following  tables  are  given  the  assessed  and  estimated  true 
values  of  a  few  representative  farms  in  counties  B,  C,  and  E.  It  will 
be  observed  that  the  ratio  of  assessed  to  true  value  for  this  class  of 
land  is  about  the  same  as  it  is  for  timberland.  About  the  only  difference 
noticeable  is  that  the  ratio  does  not  vary  so  greatly  as  it  does  in  the 
case  of  timberland.  The  figures  are  for  the  year  1909. 

County  B. 


Case  No. 

Acres. 

Tax  rate. 

Assessed  value. 

Estimated 
true  value. 

Ratio  of 
assessed  to  true 
value. 

1 
2 
3 

4 

42 
80 
400 
100 

.0308 
.0354 
.0354 
.0354 

$600 
1,000 
4.900 
900 

$1,700 
5,000 
14.000 
3,800 

Per  cent. 
37 
20 

a<> 

23 

40 


THE  TAXATION  OP  FOREST  LANDS  IN  WISCONSIN. 


County  C. 


1 

60 

.0334 

$245 

$600 

41 

2 

40 

.0334 

180 

600 

3d 

3 

40 

.0331 

240 

i.ioo 

22 

4 

80 

.0334 

750 

2,500 

30 

5 

10 

.0252 

128 

580 

22 

6 

78 

.0252 

1,253 

4,140 

30 

7 

160 

.0433 

1.250 

2,700 

46 

8 

1,340 

.0334 

6,275 

24,000 

26 

9 

80 

.0213 

925 

1,800 

51 

10 

200 

.0379 

200 

1,600 

12i 

11 

160 

.0379 

300 

1,600 

19 

County  E. 


1 

120 

.0315 

$320 

$2,000 

16 

2 

200 

.0252 

2,000 

10,000 

20 

3 

80 

.0252 

160 

800 

20 

4 

46 

.0440 

400 

1,400 

30 

5 

87 

.0440 

300 

2,500 

12 

6 

80 

.0440 

240 

1,000 

24 

7 

240 

.0252 

2,400 

12,000 

20 

The  following  table  illustrates  how  the  taxes  on  timberland  have  in* 
creased  during  the  past  few  years.  The  figures  are  taken  for  a  number 
of  forties  in  one  of  the  northern  counties.  It  is  seen  that  a  large  per- 
centage of  increase  in  tax  occurred  each  year  during  this  period,  1904- 
1909,  with  the  exception  of  the  last,  when  a  decrease  of  77  per  cent 
of  the  tax  of  1908  took  place.  The  increase  during  each  preceding  year 
is  due  to  several  causes.  Probably  the  increase  in  the  actual  value  of 
the  holdings  through  the  rise  in  stumpage  is  of  considerable  importance, 
for  assessors  are  usually  quick  to  raise  assessments  wherever  it  is  justi- 
fied. Another  factor  that  often  accounts  for  increased  taxes,  is  the 
growth  and  improvements  within  the  towns  which  means  greater  ex- 
penditures and  larger  taxes  to  meet  them. 

These  factors  operate  on  all  classes  of  property  alike.  In  the  case 
of  timber  tracts,  however,  there  has  been  a  growing  alarm  that,  with 
their  depletion,  the  towns  would  be  deprived  of  their  largest  source  of 
revenue.  There  is  everywhere,  therefore,  a  growing  tendency  to  obtain 
as  much  revenue  as  possible  from  the  timber  before  it  is  entirely 
removed.  As  a  result  of  this  policy  the  timber  holder  is  being  forced 
to  stand  a  constantly  heavier  share  of  the  community's  tax  burden 
and  to  furnish  improvements  for  the  future's  needs.  Present  taxes 
are  thus  being  used  frequently  to  provide  for  permanent  improve- 
ments, the  use  of  which  will  come  mainly  in  the  years  to  come.  The 
local  governments  are  usually  convinced  that  timber  is  not  taxed 
as  high  as  it  deserves,  and,  therefore  to  provide  against  a  future 


THE  TAXATION  OP  FOREST  LANDS  IN  WISCONSIN. 


41 


-when  there  will  be  no  timber  to  tax,  they  do  not  hesitate  to  raise 
gradually  the  tax  on  timberland., 

It  certainly  cannot  be  denied  that  there  are  extensive  timber  hold- 
ings that  are  or  long  have  been  underassessed,  and  this  is  especially 
liable  to  be  the  case  where  the  politics  of  a  town  have  been  controlled 
by  the  lumber  companies  operating  within  it  and  where,  therefore, 
the  assessments  are  made  by  the  companies  themselves.  Rapid  rises  in 
taxes  are  very  often  attributable  of  the  change  from  such  a  situation  to 
<one  where  the  town  gains  control  of  its  own  politics.  This  is  the  case  in 
many  towns  in  Wisconsin  which  have  freed  themselves  from  the 
-control  of  lumber  interests. 

Some  of  the  largest  drops  in  taxes  noted  in  the  last  column  are 
probably  due  to  the  removal  of  the  timber  on  the  forty  before  the 
<end  of  the  1908  tax  year. 


AMOUNT  OF  TAXES  PAID  PEK  FORTY  ACRES  FOR  YEARS 

Actual 

value 

1909. 

1904. 

1905. 

1906. 

1907. 

1908. 

1909. 

$705 

$3.71 

$4.80 

$11.25 

$32.90 

$33.06 

S23.40 

563 

3.18 

3.90 

6.75 

14.85 

24.04 

17.16 

202 

2  12 

2.70 

3.60 

7.92 

1  2  02 

8.58 

1,042 

6^36 

7.20 

20.10 

31.35 

42!  07 

30.03 

632 

5.04 

6.60 

10  50 

23.10 

28.55 

20.48 

310 

4.^4 

5.40 

8.70 

14.85 

18.03 

12.87 

1.746 

6.36 

7.80 

17.25 

66.00 

72.12 

51.48 

1,406 

5.04 

6.60 

16.80 

25.58 

39.07 

27.89 

576 

3.70 

4.80 

4.20 

26.90 

33.66 

23.79 

538 

5.04 

6.CO 

13.05 

27.  C6 

30.65 

21.84 

985 

6.86 

7.80 

16.50 

28.71 

45.08 

32.18 

-1,271 

7.42 

9.30 

23.55 

42.25 

49.58 

35.30 

580 

6.36 

7.80 

16.95 

47.69 

30.05 

21.45 

1,681 

6.89 

8.70 

25.65 

45.71 

69.12 

49.37 

46 

.80 

.90 

.75 

.85 

1.50 

.98 

995 

6.36 

7.80 

21.00 

36.47 

30.05 

21.45 

,086 

6.36 

7.80 

21.00 

30.86 

48.08 

34.32 

,308 

6.36 

7.80 

21.00 

52.  M7 

54.09 

38.61 

790 

6.36 

7.80 

21.00 

49.67 

48.08 

34.32 

530 

6.36 

-     7.80 

21.00 

37.80 

30.05 

21.45 

848 

7.69 

9.60 

9.45 

21.45 

as.  06 

23.60 

.038 

6.36 

8.10 

21.00 

49.50 

42.07 

32.03 

,592 

6.36 

7.80 

15.75 

39.60 

60.10 

42.90 

.850 

0.36 

7.80 

21.00 

94.88 

84.14 

7.20 

.526 

6.36 

7.80 

21.00 

47.36 

69.12 

7.20 

.639 

6.36 

7.80 

21.00 

47.03 

69.12 

7.20 

,502 

•      6.36 

7.80 

21.00 

43.73 

61.60 

7.20 

,437 

H.36 

7.80 

21.00 

39  77 

51.09 

36.47 

.113 

6.36 

7.80 

21.00 

46.70 

57.10 

40.76 

,051 

6.36 

7.80 

2'.00 

43.07 

52.59 

37.64 

317 

6.36 

7.80 

13.95 

31.35 

30.05 

7.20 

950 

4.24 

5.40 

15.15 

27.72 

42.07 

8.10 

891 

6.36 

7.80 

15.75 

21.29 

32.45 

23.40 

1,573 

6.36 

7.80 

15.75 

45.54 

69.12 

49.44 

781 

6.36 

7.80 

15.75 

27.89 

35.46 

25.35 

834 

6.36 

7.80 

15.75 

16.34 

25.54 

18.33 

1,003 

6.36 

7.80 

15.75 

25.58 

37.86 

27.30 

843 

4.51 

5.70 

14.10 

23.10 

33.96 

24.18 

624 

4.24 

5.40 

9.25 

24.59 

32.75 

23.40 

80 

1.06 

1.50 

2.25 

7.43 

1.50 

.98 

3.642 

4.24 

5.40 

52.50 

88.28 

160.77 

114.66 

Totals    $42,129 

$225.80 

$280.20 

$661.95 

$1,455.69 

$1,820.47 

$1,091.49 

Average  $1,028 

5.51 

$6.83 

$16.14 

$35.50- 

$14.40 

$24.18 

42  THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN. 


METHODS  OP  ASSESSING   TIMBERLANDS. 

Although  the  law  very  clearly  states  that  "real  property  shall  be- 
valued  by  the  assessor  *  *  *  at  the  full  value  which  could  ordi- 
narily be  obtained  therefor  at  private  sale/'  the  assessment  of  timber- 
lauds  in  practically  all  of  the  northern  counties  is  made  in  a  most- 
arbitrary  manner  and  with  apparent  disregard  of  the  requirement 
in  the  law  just  quoted.  In  only  a  few  of  the  towns  is  there  anything 
approaching  true  valuation  in  the  assessment  of  this  class  of  prop- 
erty. Timberlaud  as  a  rule  is  not  only  greatly  undervalued,  but,, 
moreover,  the  variableness  of  the  ratios  of  assessed  to  true  values  in> 
many  towns  presents  striking  examples  of  inequality  in  assessment. 
While  in  a  few  towns  there  has  been  an  apparent  attempt  to  follow  a 
given  percentage  or  fraction  of  the  true  value,  a  close  inspection 
shows  a  pronounced  variation  from  such  percentage  or  fraction. 

The  fixing  of  low  values  is  not  considered  a  violation  of  the  law.  Each 
assessor  is  likely  to  take  the  general  figures  of  his  predecessor.  He- 
knows  also  that  other  assessors  adopt  a  uniform  value  per  acre  for 
all  farm  and  cut-over  land  and  apply  it  throughout  the  assessment, 
district,  regardless  of  the  land's  advantage  or  disadvantage  of  loca- 
tion. The  assessor  is  elected  to  office  by  the  people  whose  property 
he  is  to  assess.  Then  again  he  may  be  in  the  employ  of  one  of  the 
largest  property  owners  in  the  town,  and  in  passing  it  should  be  said 
that  the  administration  of  many  of  the  towns  is  virtually  in  the  con- 
trol of  the  principal  property  owner  therein,  and  that  the  assessor 
is  in  the  employ  of  such  owner  while  not  engaged  in  the  performance 
of  his  official  duties.  All  of  these  conditions  tend  to  encourage  under- 
valuation, and  it  is  believed  they  are  in  no  small  measure  responsible 
for  it. 

The  law  also  requires  that  in  determining  the  value  of  real  estate 
the  assessor  shall  consider,  as  to  each  piece,  the  quantity  of  standing 
timber.  For  an  assessor  to  get  a  fair  approximation  of  the  true  value 
of  such  standing  timber,  he  must  be  able  to  estimate  with  some  de- 
gree of  accuracy  and  be  familiar  with  timber  values.  Many  of  the 
assessors  do  not  have  these  qualifications,  and  those  who  do  are 
often  prevented  from  exercising  them,  except  in  a  limited  way,  for 
the  reason  that  the  time  allowed  for  making  up  the  assessment  roll 
is  not  suffcient  to  enable  an  assessor  to  cover  as  he  should  more 
than  a  part  of  his  assessment  district.  It  should  be  said,  however, 
that  in  a  few  towns  they  do  attempt  to  see  each  timber  descrip- 


THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN.  43 

tion  in  at  least  one  or  two  townships  each  year.  The  assessor  i& 
accompanied  by  a  lineman  to  assist  in  locating  the  description,  and 
the  assessed  value  is  determined  at  that  time.  In  a  strict  sense  no 
cruised  estimate  is  made.  Such  assessments  are  made  each  year  on 
lands  not  previously  viewed  by  the  assessor  until  the  entire  town 
has  been  covered.  In  other  towns  there  is  very  little  evidence  of  such 
systematic  work  being  carried  on,  although  occasionally  it  will  be 
found  that  an  effort  is  being  made  in  that  direction. 

Cut-over  land  is  usually  valued  at  a  fixed  rate  throughout  a  town, 
varying  only  with  a  very  rough  classification  of  the  soil  as  swamp, 
hardwood,  or  pine  land.  As  a  rule  no  attention  is  given  to  such  impor- 
tant factors  governing  value  as  proximity  to  railroads,  highways  and 
water.  Cut-over  pine  lands  are  seldom  assessed  for  more  than  $2 
per  acre,  while  cut-over  hardwood  lands  will  rarely  exceed  $6  per 
acre.  In  the  extreme  northern  counties  both  cut-over  pine  and  hard- 
wood lands  may  be  assessed  as  low  as  $1  per  acre.  Cultivated  land  in 
some  towns  is  assessed  at  the  same  values  as  cut-over  land.  Even  in 
the  more  developed  farming  communities  the  assessed  values  of  cul- 
tivated lands  seldom  exceed  $10  per  acre,  although  the  sale  value  in 
many  cases  is  five  times  as  great. 

Instead  of  an  actual  examination  of  timbered  land  there  is  more 
often  merely  an  interview  with  the  owner.  In  most  of  the  hardwood 
regions  the  land  is  not  considered  separately.  However,  when  any 
estimate  is  made,  the  land  and  trees  are  treated  separately.  For  ex- 
ample, in  the  one  county,  where  practically  all  the  timber  is  estimated,  a 
value  of  $2  per  acre  is  always  added  to  the  assessed  value  of  the 
timber.  The  county  just  referred  to  is  the  only  one  where  it  is  known 
that  cruises  for  estimating  the  timber  for  tax  purposes  have  been 
made  throughout  the  county.  In  some  towns  the  cruised  values  of 
a  considerable  portion  of  the  timbered  area  are,  of  course,  known  to 
the  assessor,  who  is  either  an  officer  or  employe  of  one  of  the  com- 
panies having  extensive  holdings  in  the  town,  but  such  cruised  values 
are  evidently  not  used  in  making  up  the  assessment  roll.  In  such 
^ases  the  assessor  uniformly  keeps  the  assessed  value  as  low  as  pos- 
sible, not  only  on  the  company's  holdings  but  also  on  all  others.  In 
adjoining  towns,  where  the  assessor  is  not  so  connected  with  a  large 
owner,  it  will  generally  be  found  that  assessed  values  are  higher. 

Assessments  are  lowered  when  the  owner  reports  that  the  timber 
has  been  removed,  and  it  is,  therefore,  classed  as  cut-over  land  and 
assessed  at  the  prevailing  rate  for  such  land  in  the  town  where 


44  THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN. 

located.  Generally,  if  not  always,  the  assessor  will  accept  such  report 
as  correct  and  make  no  investigation  to  determine  whether  or  not 
the  description  has  been  entirely  or  only  partly  cut,  with  the  result 
that,  if  only  partly  cut,  it  is  undervalued  year  after  year.  No  doubt 
in  many  instances  descriptions  are  assessed  without  taking  into  ac- 
count the  standing  timber  thereon.  At  least  a  comparison  of  the 
assessed  and  estimated  true  value  of  many  of  the  examples  given  here- 
in would  indicate  that  this  is  the  case.  So  far  as  could  be  learned 
none  of  the  assessors  give  any  consideration  to  young  growth  in  fixing 
values. 

While  the  practice  of  undervaluation  prevails  throughout  most  of 
that  part  of  the  state  now  being  considered,  it  should  not  be  under- 
stood that  this  condition  is  universal.  In  many  localities  a  con- 
scientious and  fairly  systematic  effort  is  being  made  by  assessing 
officers  to  conform  to  the  law.  In  a  large  measure  the  importuni- 
ties of  the  county  supervisor  of  assessment  have  influenced  the  as- 
sessor in  raising  the  valuation  of  this  class  of  property;  and  in  many 
cases,  independent  of  such  solicitations  from  supervisors  of  assessment, 
the  assessor  has  endeavored  to  faithfully  comply  with  the  tax  lav/s 
regarding  valuation. 

VIEWS  OF  LUMBERMEN  ON  TAXATION. 

In  carrying  on  the  investigation  of  timber  taxation  in  northern  Wis- 
consin it  was  manifestly  of  primary  importance  to  obtain,  as  com- 
pletely as  possible,  the  views  of  lumbermen  on  this  subject.  A  large 
part  of  the  work,  therefore  was  devoted  to  interviews  with  large 
operators,  and  in  many  instances  where  personal  conferences  were 
impossible,  a  great  deal  was  brought  out  by  correspondence  with 
them. 

The  views  expressed  by  these  representative  timber  holders  were 
by  no  means  uniform.  There  was,  however,  very  little  difference  of 
opinion  on  the  question  whether  the  present  system  of  taxing  forest 
lands  is  or  is  not  satisfactory;  and  the  one  pointed  criticism  directed 
against  this  system  that  stands  out  clearly  above  all  others,  was  that 
taxes  at  present  absolutely  forestall  any  attempt  in  northern  Wiscon- 
sin to  hold  cut-over  land  for  growing  a  second  timber  crop.  While 
it  may  be  true  that  occasionally  a  company  plans,  even  under  exist- 
ing conditions,  to  cut  over  their  holdings  a  second  time,  there  were 
only  two  instances  of  this  sort  discovered.  In  neither  case,  moreover, 
was  there  any  effort  being  made  to  provide  for  reproduction  or  to 


THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN.  45 

obtain  an  actual  second  growth;  but  the  second  cut  would  include, 
as  a  rule,  only  such  trees  as  were  left  as  culls  after  the  original 
operation,  and  which  it  was  expected  would  in  the  next  ten  or  fifteen 
years  acquire  a  marketable  value.  In  both  instances  it  is  intended 
that  these  areas,  after  being  cut  over  the  second  time,  shall  be  dis- 
posed of  for  farm  land;  and  it,  therefore,  appears  that  the  second- 
cut  idea  is  largely  a  matter  of  covering  the  costs  of  holding  such  lands 
over  a  period  during  which  land  values  are  expected  to  rise.  The 
view  was  emphatically  expressed  by  most  lumbermen  that,  under  the 
present  tax  methods,  no  second  cuts  of  timber  could  ever  be  relied 
upon,  and  would  only  be  obtained  here  and  there  where  fires  were 
scarce  and  taxes  low.  In  one  instance  where  the  present  mature 
timber  has  been  held  for  the  past  twenty  years,  the  owner  maintains 
that  the  taxes  already  paid  in  have  exceeded  the  present  value  of 
the  timber.  This  is  exceptional  but  goes  to  show  the  hopeless  outlook 
for  owners  of  young  timber  in  such  towns  who  may  desire  to  hold 
it  until  it  reaches  merchantable  size. 

Lumbermen,  however,  naturally  show  less  real  concern  over  so  re- 
mote a  difficulty  as  their  inability  to  grow  second  crops  of  timber 
than  over  the  more  immediate  injuries  chargeable  to  the  operation 
of  the  general  property  tax.  It  certainly  can  not  be  denied  that  the 
average  large  timber  holder  has  sufficient  grounds  for  complaint  over 
injustices  attributable  to  the  unsatisfactory  administration  of  the 
present  tax  law  and  often  to  the  law  itself.  Assessors  will,  almost 
without  exception,  persistently  hold  to  the  illogical  conclusion  that  a 
large  owner  of  stumpage  is  not  overtaxed  so  long  as  his  assessments 
do  not  exceed  the  real  value  of  his  property.  Most  lumbermen  will 
acknowledge  that,  as  a  rule,  timber  holdings  are  assessed  at  not  more 
than  from  40  to  60  per  cent  of  their  full  values.  Yet  it  is  perfectly 
obvious  that  great  injustice  results  to  a  lumberman,  if  other  classes 
of  property  are  at  the  same  time  assessed  at  only  from  20  to  40  per 
cent  of  their  marketable  value.  He  is  then  materially  overtaxed 
even  though  admittedly  underassessed.  This  is  exactly  the  case  in 
northern  Wisconsin  between  the  lumbermen  and  the  farmers.  Culti- 
vated land,  the  lumbermen  assert,  is  seldom  assessed  at  more  than 
from  20  to  30  per  cent  of  its  true  value,  while  from  40  to  60  per 
cent  more  nearly  represents  the  proportion  of  true  value  charged 
against  cut-over  timberlands. 

Very  few  timberland  owners,  however,  lay  particular  stress  on  this 
phase  of  the  injustice  suffered  by  them.  Cultivated  land  is  so 


46  THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN. 

limited  in  amount  compared  with  timbered  areas,  that  should  it  be 
completely  exempted  from  taxation,  the  actual  tax  burden  on  the 
forests  would  not  be  materially  increased.  Then,  too,  the  lumberman, 
who  desires  to  dispose  of  his  cut-over  land  for  farms,  is  not  slow  to 
appreciate  the  influence  of  low  farm  assessments  as  an  inducement 
to  settlement.  With  scarcely  an  exception,  however,  the  representa- 
tive lumbermen  emphatically  assert  that  the  fundamental  difficulty 
against  which  they,  as  the  heaviest  taxpayers,  have  to  contend  is 
the  extravagance  of  town  and  county  governments,  which  they  say 
is  the  cause  of  the  abnormally  high  tax  rates  characteristic  of  much 
of  northern  Wisconsin.  The  lumbermen  say  that  this  tendency  to- 
ward needlessly  large  financial  outlays  does  not  necessarily  take  the 
form  of -dishonest  appropriation  of  funds,  although  in  some  instances 
evidence  points  strongly  in  that  direction.  In  fact  several  timber- 
men  did  not  hesitate  to  specify  certain  towns,  where  they  were  con- 
vinced public  funds  were  being  used  for  personal  benefit.  Their 
chief  contention,  however,  with  regard  to  extravagance  was  that  a 
great  many  towns  are  straining  every  nerve  to  put  in  all  possible 
imprpvements — roads,  schoolhouses  and  bridges — before  the  timber 
is  gone.  In  this  manner  the  timber  pays  in  taxes  for  improvements 
that  are  made  far  in  advance  of  the  real  needs  of  the  community.  In- 
competency  of  local  officials  is  another  charge  made  by  large  tax- 
payers, and  without  doubt  it  is  accountable  for  a  great  deal  of  need- 
less expenditure,  such  as  is  too  often  glaringly  evident  in  the  in- 
efficient construction  and  repair  work  of  public  highways.  While  the 
other  extreme — the  strict  economy  and  lack  of  needed  improvements, 
too  often  the  results  where  the  town  is  controlled  by  a  large  lumber 
company — is  assuredly  of  questionable  expediency,  it  is  certainly 
preferable  to  a  corrupt  local  government 

In  their  efforts  to  end  this  irresponsibility  and  undue  extravagance 
on  the  part  of  local  officials  in  the  expenditure  of  public  funds,  the 
larger  taxpayers,  comprising  chiefly  the  lumber  and  land  companies, 
have  organized  in  several  of  the  northern  timber  counties  of  the 
State  taxpayers '  associations.  These  organizations  aim  to  secure  in 
these  northern  counties  more  equal  tax  assessments  and  to  aid 'in  the 
betterment  of  highways  by  looking  after  the  money  raised  by  taxes 
for  road  improvements.  They  believe  a  reasonable  publicity  in  these 
matters  will  largely  correct  the  present  abuses  and  result  in  the  adop- 
tion of  a  lower  tax  rate.  At  present  the  tax  rate  throughout  the 
region  studied  is  exceedingly  variable  with  the  different  towns,  but 


THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN.  47 

is  everywhere  abnormally  high,  seldom  below  2%  per  cent  and  in 
one  case  as  high  as  T1/^  per  cent.  Almost  every  company  complains 
of  these  high  rates,  especially  when  combined  with  the  comparatively 
high  assessments  already  discussed. 

On  the  question  .of  the  proposed  deferred  tax  on  young  timber  as 
a  solution  of  the  tax  problem  in  northern  Wisconsin,  there  were 
widely  divergent  views  expressed  by  the  different  lumbermen.  Al- 
most everyone  of  them,  however,  believed  that  such  a  tax  on  yield 
was  theoretically  correct  and  might  wisely  be  given  a  trial.  A  repre- 
sentative of  one  of  the  companies,  however,  took  exception  to  this 
general  view  and  expressed  himself  as  reluctant  to  see  the  plan  at- 
tempted, for  fear  that  the  people  of  the  towns  would  misunderstand 
its  workings  and  would  conclude  that  the  timber  owners  were  in 
some  way  escaping  their  taxes. 

On  the  other  hand,  the  opinion  was  frequently  given  that  no  other 
plan  than  the  deferred  tax  on  yield  would  meet  the  needs  of  the  situa- 
tion. Nearly  every  lumberman  agreed  that  a  modification  to  provide  for 
an  annual  tax  on  the  land  appraised  as  waste  Or  cut-over  land  would 
probably  have  to  be  conceded.  One  large  operator,  however,  took 
radical  exception  to  such  a  concession  which  be  believed  would 
create  speculative  values  in  timberland.  He  believed  that  if  any 
change  were  contemplated  it  should  make  provision  for  deferring  all 
taxes  for  a  definite  period  of  years.  His  idea,  however,  was  more 
nearly  one  of  exemption  during  that  period,  at  least  as  far  as  ap- 
plied to  the  land.  After  that  a  tax  on  both  timber  and  land  could 
be  levied. 

One  of  the  largest  hardwood  operators  who  had  already  given  the 
subject  much  thought  believed  that  the  local  governments  would  re- 
quire a  more  regular  income  from  taxes  than  would  be  possible  under 
a  deferred  tax  system  without  further  modification.  His  view  was 
that  an  annual  tax  should  be  charged  to  the  land  and  timber  to- 
gether, at  half  the  present  valuation,  and  that  the  difference  could 
be  deferred  until  the  final  cut.  There  is  serious  question,  however, 
whether  such  a  variable  system  would  not  be  subject  to  as  grave  abuses 
l^y  assessors  and  be  as  open  to  objection  as  the  present  system.  The 
chief  merits  of  any  plan  of  deferred  taxation  arise  from  the  relief 
it  would  afford  the  grower  of  timber  from  the  great  risks  and  uncer- 
tainties in  his  investment,  due  to  variable  and  unjust  assessments 
which  he  is  unable  to  forecast.  If  taxes  are  to  be  based  on  what  he 
knows  will  be  actually  produced  in  lumber  and  on  a  definite  fixed 


48  THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN. 

land  value  he  can  then  calculate  ahead,  and  a  large  factor  in  the 
total  risk  is  accordingly  canceled.  If,  however,  the  assessed  values 
in  any  proposed  tax  reform  are  to  be  based  on  present  methods  of 
valuation,  abuses  will  continue.  He  proposed  to  collect  at  the  end 
of  the  rotation  a  deferred  tax  based  on  yield,  or  rather  only  so  much 
of  it  as  has  not  already  been  paid  into  the  towns  by  the  annual  tax 
on  half  the  present  assessed  value.  Yet  it  is  not  at  all  improbable 
that  this  annual  tax  will  by  the  end  of  the  rotation  have  amounted 
to  more  than  the  final  deferred  tax  in  which  case  tre  balance  would 
be  on  the  side  of  the  lumber  company.  Such  complications  with 
their  possible  resultant  litigation  would  serve  to  make  a  timber-grow- 
ing investment  in  northern  Wisconsin  as  hazardous  as  it  is  today. 

If  a  system  can  be  worked  out  satisfactorily  based  on  the  de- 
ferred tax  on  yield  with  the  added  feature  of  an  annual  tax  on  the 
land  considered  as  waste  land,  there  can  be  no  doubt  that  the  revenue 
from  a  given  timber  tract  during  a  rotation  would  not  aggregate  as 
much  as  the  sum  of  the  annual  taxes  that  would  be  levied  under  the 
present  unsatisfactory  system.  It  might  at  first  appear,  therefore, 
that  under  a  deferred  tax  system  the  local  governments  would  be 
deprived  of  a  part  of  their  source  of  income.  In  reality,  however, 
the  change  should  logically  result  in  creating  a  larger  amount  of  tax- 
able property  within  the  towns.  No  concessions  should  be  granted 
to  the  few  companies  who  desire  to  have  their  mature  timber  put 
under  the  provisions  of  this  tax  law,  because  there  would  unques- 
tionably be  considerable  loss  of  revenue  to  the  towns.  It  is  distinctly 
out  of  the  question  to  apply  this  reform  to  any  but  young  and 
growing  timber,  and  then  only  where  certain  regulations  providing 
for  the  best  management  and  protection  of  the  tracts  are  fully  com- 
plied with  by  the  owners.  This  proposal  should  result  in  the  suc- 
cessful establishment  and  continued  protection  of  young  stands  of 
valuable  timber  on  thousands  of  acres  of  non-agricultural  land,  and 
this  should  afford  an  important  source  of  future  tax  revenue  to  the 
local  governments. 

Under  existing  conditions  such  cut-over  areas  are  disposed  of  for 
farms  even  when  of  very  questionable  adaptability  for  agriculture 
with  no  thought  of  the  probable  hardships  of  the  farmers  who  try 
to  make  an  existence  from  them.  Where  not  thus  disposed  of 
such  tracts  are  naturally  restocked  with  valuable  young  trees  which 
through  lack  of  adequate  protection  from  fire  are  almost  surely  doomed 
to  destruction  before  reaching  any  valuable  dimensions.  There  are 


THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN.  49 

extensive  areas  of  such  wild  cut-over  and  burned-over  lands  in  north- 
ern Wisconsin  which  will  continue  unproductive  of  taxes  or  anything 
else  until  young  stands  of  valuable  species  are  established  on  them. 
Therefore,  to  materially  reduce  the  taxes  on  growing  timber  and  to 
thus  encourage  a  wise  utilization  and  protection  of  such  areas  can 
not  be  construed  as  a  hardship  to  a  town. 

In  northern  Wisconsin  there  is  by  no  means  a  scarcity  of  fertile 
hardwood  land  which  affords  abundant  and  varied  possibilities  to  the 
enterprising  farmer.  Yet  lumbermen  frequently  emphasize  the  fact 
that  under  existing  conditions  considerable  land  has  to  be  put  on  the 
market  as.  agricultural  land  at  $3  per  acre  which  is  unfit  for  agricul- 
tural purposes  at  any  price.  Almost  every  large  timberland  owner 
who  expressed  his  views  on  the  situation  acknowledged  that  parts  of 
his  own  holdings  were  of  typical  forest  soil,  and  that  it  would  be  of 
material  benefit  to  the  communities  in  which  such  tracts  were  located 
if  they  could  be  permanently  maintained  for  the  production  of  timber. 
Possibly  half  of  the  large  operators  stated  that  under  a  favorable 
law  they  themselves  would  be  influenced  to  maintain  whatever  lands 
of  this  nature  they  possessed  for  growing  a  second  crop  of  timber. 

On  the  other  hand  there  were  not  a  few  companies  that  advanced 
reasons  why  they  could  scarcely  hope  to  hold  any  of  their  lands  for 
future  forest  growth.  For  example,  certain  companies  operating  in 
the  southern  part  of  the  region — as  in  Rusk  county,  where  most  ot 
the  land  is  tillable — naturally  argued  that  their  wisest  course  would 
be  to  dispose  of  all  of  their  holdings  for  agricultural  purposes,  in- 
cluding even  the  scattered .  non-agricultural  areas  which  in  most 
cases  are  not  large  enough  to  constitute  lumbering  units.  Another 
company  was  utilizing  even  the  smallest  trees  on  its  holdings  for  the 
manufacture  of  wood  alcohol  and  acetate  of  lime;  therefore,  since 
nothing  was  left  to  form  the  basis  of  a  second  crop  they  did  not 
intend  to  hold  any  land  for  this  purpose.  Several  others  possessed 
holdings  of  insufficient  area  to  furnish  a  basis  for  continuous  opera- 
tions. Many  companies  were  opposed  to  long-time  investments  ex- 
ceeding in  duration  the  average  length  of  life  and  believed  that  all  such 
undertakings  to  provide  timber  for  future  needs  should  be  made  by  the 
state  or  local  government. 


50  THE  TAXATION  OP  FOREST  LANDS  IN  WISCONSIN. 


THE  ATTITUDE  TOWARD  FIRE. 

One  of  the  most  serious  obstacles  to  the  practice  of  forestry  by  the 
lumber  companies,  and,  therefore,  to  the  satisfactory  working  out  of 
any  tax  system  designed  to  encourage  timber  growing  is  the  abso- 
lute lack  of  popular  appreciation  of  the  damage  wrought  to  a  forest 
by  fire  and  the  callous  disregard  on  the  part  of  many  settlers  for 
the  state's  fire  laws.  As  a  result  the  fire  damage  throughout  this 
whole  region  is  simply  enormous,  and  the  injury  to  young  growth 
which  is  usually  not  considered,  is  almost  irreparable.  A  representa- 
tive of  one  of  the  large  lumber  companies  in  Price  county  gave  it  as 
his  opinion  that  in  this  county  alone  at  least  20,000,000  board  feet 
of  lumber  were  annually  ruined  by  fire.  According  to  Mr.  E.  M. 
Griffith,  State  Forester  of  Wisconsin,  the  damage  to  mature  timber 
and  property  from  forest  fires  in  1908  amounted  to  fully  $9,000,000. 
Consequently  a  most  adverse  feature  of  this  fire  situation  is  that  no 
individual  or  company  can  consider  forestry  methods  or  hope  to  ob- 
tain reproduction  on  cut-over  land  until  some  adequate  system  of  fire 
control  has  been  tried  and  its  efficiency  amply  demonstrated.  Very 
little  success  along  this  line  can  be  expected  until  the  state  is  will- 
ing to  provide  for  a  thorough  fire  patrol  during  all  dangerously  dry 
seasons. 

As  clearly  pointed  out  in  the  report  of  the  State  Forester  of 
Wisconsin  for  1908,  the  present  system  of  fire  wardens,  while  good 
as  far  as  it  goes,  falls  far  short  of  meeting  the  actual  needs  of  the 
situation.  Under  this  system  the  fire  wardens  are  all  local  men, 
and  it  is  not  strange  that  in  a  great  many  instances  they  should 
fail  to  take  legal  action  against  a  neighbor  who  may  have  been 
guilty  of  breaking  the  fire  law.  But  the  most  serious  defect  in  the 
present  law  is  its  failure  to  provide  for  fire  patrol,  which  is  the  one 
great  need  of  this  whole  region.  The  lumbermen  so  fully  appreciate 
the  urgency  of  such  measures  for  prevention  of  fires  that  they  are 
willing  in  many  cases  to  form  a  fire  protective  association  to  be  main- 
tained by  levying  an  annual  assessment  on  an  acreage  basis  from 
each  member,  and  having  as  its  primary  object  an  extensive  system  of 
fire  patrol.  Such  a  patrol  should  not  cost  over  2  cents  per  acre  per  year, 
and  could  be  placed  directly  under  the  State  Fire  Warden,  by  whom 
the  individual  local  patrols  could  be  appointed  and  made  regular  fire 
wardens.  A  patrol  system  of  this  kind  should  extend  to  the  other  parts 
of  the  towns  as  well  as  to  the  holdings  of  the  associated  lumber  com- 


THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN.  51 

panics,  and  the  towns  should  be  charged  for  patrol  and  fire -fighting 
service  within  their  borders.  At  present  it  is  left  entirely  to  the  dis- 
cretion of  the  towns  as  to  how  much  they  shall  pay  for  such  services, 
whereas  they  should  be  compelled  to  settle  all  accounts  for  fire  fighting 
or  patrol  submitted  by  the  wardens  and  audited  and  approved  by  the 
State  Fire  Warden. 

Another  variation  of  this  same  plan  may  be  suggested  whereby 
the  present  town  fire  warden  system  should  be  maintained  independ- 
ently of  the  lumber  companies'  patrol,  but  working  in  harmony  with 
it  under  co-operative  agreement  between  the  state  and  the  associa- 
tion. In  any  case  it  is  quite  obvious  that  very  limited  results  can  be 
looked  for  from  tax  reform  until  the  fire  risk  is  largely  eliminated 
through  adequate  legislation  and  effective  enforcement  of  the  same. 

Attention  has  already  been  called  to  the  fact  that  a  large  number 
of  the  companies  interviewed  declared  that  a  satisfactory  tax  law  with  a 
deferred  tax  on  the  yield  as  its  basic  feature  would  influence  them  to 
hold  certain  portions  of  their  lands  for  a  second  growth  of  timber.  It 
would  seem,  however,  decidedly  unwise  to  place  unqualified  reliance  on 
these  seemingly  favorable  expressions  of  opinion.  This  means  no  reflec- 
tion on  the  sincerity  of  such  companies,  but  there  is  undoubtedly 
need  of  calling  attention  to  certain  difficulties.  In  the  first  place, 
it  is  far  from  certain  what  the  lumber  companies  would  agree  on  as 
a  satisfactory  law.  There  is,  in  fact,  actual  basis  for  a  belief  that 
certain  of  the  forestry  regulations  which  would  be  deemed  essenti  il 
to  the  successful  administration  of  such  a  law  would  meet  with 
the  serious  disfavor  of  many  of  the  companies.  Efforts  already  exerted 
on  the  part  of  the  Wisconsin  State  Board  of  Forestry  to  secure  the 
co-operation  of  the  lumber  companies  in  obtaining  fire  protection 
have  in  several  instances  met  with  considerable  opposition  wherever 
slash  burning  under  careful  supervision  was  insisted  upon.  It  is 
extremely  improbable  that  many  lumber  companies  would  desire  to 
avail  themselves  of  a  deferred  tax  provision  if  it  entailed  a  com- 
pliance with  regulations  that  were  distasteful  to  them. 

Moreover,  it  is  not  at  all  improbable  that  a  great  many  companies 
which  at  present  believe  that  with  a  change  in  the  tax  system  they 
would  practice  forestry,  may  gradually  realize  the  seriousness  of  the 
objection  brought  forward  by  several  of  the  largest  lumber  concerns 
of  that  section  to  the  effect  that  forestry,  because  of  its  long-time 
features  with  the  attendant  risks,  does  not  afford  a  sufficiently  at- 
tractive investment  to  appeal  to  private  capital.  The  views  of  one  of 


52  THE  TAXATION  OP  FOREST  LANDS  IN  WISCONSIN. 

the  large  operators  along  this  line  were  that  although  a  tax  on  yield 
would  undoubtedly  be  of  distinct  advantage  in  its  effect  on  the  con- 
servation movement  in  general,  and  would  most  likely  react  favorably 
in  influencing  the  future  owners  of  the  land  to  keep  non-agricultural 
areas  in  timber,  yet  its  effect  on  present-day  lumbering  operations 
would  be  scarcely  noticeable.  He  believed  it  would  be,  for  many  years 
to  come,  financially  advantageous  for  a  lumberman  to  clean  up  his 
operations  and  dispose  of  his  cut-over  land  as  quickly  as  possible, 
and  he  was  firmly  of  the  opinion  that  it  was  the  province  of  the 
state  to  have  full  control  of  absolute  forest  lands.  Mr.  A.  E.  James, 
Statistician  of  the  Wisconsin  Tax  Commission,  in  pointing  out  how 
insufficient  might  be  the  relief  afforded  a  lumberman  by  such  a  law 
because  of  this  very  limitation,  cites  the  following  example  which 
well  illustrates  the  unsatisfactory  possibilities.  "  Where,  say  $10,00^ 
is  to  be  raised,  if  the  assessment  is  $1,000,000,  the  rate  will  be  1  per 
cent.  If  $100,000  of  that  million  is  agricultural  and  improved  land 
and  $900,000  is  forest  land,  the  forest  will  obviously  pay  a  tax  of 
$9,000.  If  we  assume  $600,000  represents  the  value  of  the  timber 
which  it  is  proposed  to  exempt,  the  valuation  of  the  town  would  be 
cut  to  $400,000,  of  which  $300,000  would  represent  the  (timber) 
land  value  exclusive  of  the  timber.  With  the  same  amount  of  tax 
to  be  raised  the  rate  would  be  2%  per  cent  and  the  timberland  would 
bear  a  tax  of  $7,500."  In  other  words,  under  the  example  assumed, 
the  exemption  of  $600,000  of  timber  would  only  result  in  the  reduc- 
tion of  the  tax  by  $1,500.  Any  material  tax  on  the  timber  when  cu 
would  undoubtedly  very  much  more  than  make  up  for  this  difference 
and  would  ultimately  result  in  heavier  rather  than  lighter  taxation 
of  forests. 

While  this  example  fails  to  give  due  prominence  to  the  effect  of 
the  income  from  the  tax  on  yield  in  keeping  down  the  tax  rate, 
it  certainly  points  out  difficulties  in  the  way  of  the  adoption  of  such 
a  law.  Because  of  these  difficulties  in  the  successful  administration 
of  the  law  and  more  particularly  because  forestry  is  fundamentally 
a  long  time  proposition  extending  through  many  years  before  returns 
may  be  expected,  there  is  much  to  be  said  in  favor  of  state  control  of 
all  absolute  forest  land. 


THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN.  53 


TREE  BELT  AND  FOREST  PLANTATION  LAWS. 

For  many  years  there  was  a  law*  in  force  in  Wisconsin  which  ap- 
parently was  designed  to  encourage  the  growing  of  windbreaks.  By 
this  law  every  owner  of  five  or  more  acres  of  land  who  successfully 
grew  forest  trees  of  certain  species  in  tree  belts  of  a  specific  charac- 
ter, should  be  entitled  to  have  the  land  on  which  such  tree  belts  grew, 
exempted  from  taxation  from  the  time  the  trees  commenced  to  grow 
until  they  reached  a  height  of  12  feet,  after  which  time  the  owner 
was  to  be  allowed  an  annual  bounty  of  $2  for  each  acre  grown. 

It  is  not  doubted  that  the  framers  of  this  law  were  well -meaning 
but  it  is  not  clear  why  they  thought  it  necessary  to  be  so  exacting  in 
regard  to  the  species  to  be  planted,  the  height  the  tree  should  attain 
before  the  exemption  period  ceased  and  the  bounty  period  began,  and 
the  height  to  which  it  should  eventually  grow.  Also,  why  they 
should  be  so  exacting  with  regard  to  the  relative  location  of  the  tree 
belt.  Although  the  law  was  in  force  for  many  years,  it  is  doubtful 
whether  any  persons  ever  attempted  to  comply  with  its  provisions. 
If  they  did,  there  is  every  reason  to  believe  they  were  not  successful, 
for  the  35  replies  received  from  inquiries  addressed  to  60  counties 


*  In  order  to  show  the  particularities  to  which  an  applicant  had  to  conform 
before  becoming  entitled  to  such  exemption  and  bounty,  the  law  is  quoted  in 
full: 

"(Sec.  1469.  Statutes  of  1898.)  Every  owner  or  possessor  of  five  acres 
of  land  or  more  who  shall  successfully  grow  by  planting  with  forest  trees, 
consisting  of  the  following  kinds  of  such  species  thereof  as  will  grow  to 
the  height  of  50  feet  or  more,  viz.:  arbor  vitae,  ash,  balsam  fir,  basswood, 
beech,  birch,  butternut,  cedar,  blacK  cherry,  chestnut,  coffee  tree,  cucumber 
tree,  elm,  hackberry,  hemlock,  hickory,  larch,  locust,  maple,  oak,  pine, 
spruce,  tulip  tree,  and  walnut,  tree  belts  in  the  manner  and  form  pre- 
scribed in  the  next  section  shall  be  entitled  to  have  the  land  on  which  such 
tree  belts  grow  exempted  from  taxation  from  the  time  the  tree's  commence 
to  grow  until  they  shall  reach  the  height  of  12  feet,  and  after  they  shall 
have  attained  that  height  to  receive  an  annual  bounty  of  $2  per  acre  for 
each  acre  so  grown. 

"(Sec.  1470.  Statutes  of  1898.)  Such  tree  belts  shall  be  planted  on  the 
west  or  south  sides  of  each  tract  of  land,  be  of  uniform  width  throughout 
their  entire  length,  contain  not  less  tnan  eight  trees,  at  nearly  equidis- 
dance,  on  eacn  square  rod  of  land,  and  be  at  least  30  feet  wide  for  each 
5-acre  tract,  60  feet  wide  for  each  10-acre  tract,  and  100  feet  wide  for  each 
square  40-acre  tract,  and  upon  all  square  tracts  of  land  upon  two  sides 
thereof.  All  tree  belts  owned  by  the  same  land  owner  must  be  planted  not 
to  exceed  a  fourth  of  a  mile  apart  and  on  the  west  and  south  sides  of  every 
square  forty  acres,  and  shall  not  exceed  one-fifth  of  the  entire  tract  of 
land  on  which  the  same  are  planted;  provided,  that  when  the  east  and 
north  sides,  or  either,  of  any  tract  of  land  is  bounded  by  a  public  highway, 
a  tree  belt  one  rod  wide  may  be  planted  next  to  said  highway,  although 
it,  with  the  others  on  the  west  and  south  sides,  shall  exceed  one-fifth  of 


54  THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN. 

said  that  no  exemption  or  bounty  had  ever  been  granted  under  the 
law.  It  was  very  properly  repealed  by  Section  23,  Chapter  264,  1905. 

In  1907  the  Legislature  enacted  a  law  (Sections  1494 — 101  to 
1494 — 111,  inclusive)  to  encourage  the  planting  and  cultivation  of 
woodlots.  By  its  terms  the  owner  of  any  land  in  the  state  who  shall 
set  apart  any  specific  portion  thereof,  not  exceeding  40  acres,  for 
forest  culture  and  plant  the  same  with  not  less  than  1,200  trees  to 
the  acre,  shall  be  exempted  from  taxation  for  a  period  of  80  years 
from  the  time  of  such  planting,  provided  the  trees  are  kept  alive  and 
in  a  healthy  condition.  After  the  trees  have  been  planted  10  years 
the  owner  may,  without  waiving  the  tax  exemption,  thin  them  out 
so  that  not  less  than  600  trees  shall  be  left  upon  each  acre. 

Persons  applying  for  exemption  under  the  provisions  of  this  law 
are  required  to  file  in  duplicate  a  description  and  plat  of  all  lands 
so  planted;  one  copy  of  the  description  and  plat  to  be  filed  with 
the  county  clerk  and  the  other  copy  with  the  State  Forester.  Except 
upon  the  written  approval  of  the  State  Forester,  the  provisions  of 
the  act  shall  riot  apply  to  any  lands  within  two  miles  of  the  limits 
of  any  incorporated  city  or  village. 

While  it  is  not  entirely  clear,  it  would  seem  from  the  wording  of 
Section  1494 — 106  that  the  necessary  implication  would  be  that  the 
exemption  can  not  apply  to  any  tract  of  land  of  an  average  value  of 
more  than  $10  per  acre  at  the  time  of  planting.  The  owner  may 


the  whole  tract;  and  tree  belts  may  be  planted  on  any  other  lines  within 
each  forty  square  acres  by  permission  of  the  assessor. 

"(Sec.  1471.  Statutes  of  1898.)  The  assessor  shall,  upon  the  application 
of  the  owner  thereof,  in  each  year,  at  the  time  of  assessing  the  personal 
property  in  his  district,  make  a  personal  examination  of  all  tree  belts  for 
which  bounty  or  exemption  from  taxation  is  claimed  and  ascertain 
whether  they  have  been  planted  as  required  in  the  preceding  section  and 
are  thriftily  growing;  and  if  he  shall  be  satisfied  thereof  he  shall  not 
assess  the  same  for  taxation  unless  the  trees  therein  shall  have  attained 
the  height  of  12  feet;  and  in  that  case  he  shall  deliver  to  the  owner  a 
certificate  that  he  is  entitled  to  an  annual  bounty  of  $2  for  each  acre  of 
such  tree  oelts,  stating  therein  the  whole  amount  of  such  bounty  and  giv- 
ing a  description  of  the  entire  land  of  which  the  tree  belts  form  a  part, 
and  the  amount  of  such  bounty  shall  be  credited  by  the  treasurer  in  pay- 
ment of  any  taxes  assessed  on  such  land  as  so  much  cash;  but  if  not  so 
satisfied  the  assessor  shall  assess  the  land  for  taxes  or  refuse  to  grant  any 
certificate  for  the  bounty,  as  the  case  may  require;  and  if,  after  any  cer- 
tificate for  such  bounty  shall  have  been  issued,  the  owner  of  any  such 
tree  belts  shall  suffer  the  same  to  die  out  by  want  of  cultivation  or  other- 
wise, or  shall  cut  the  same  down,  or  in  any  other  way  allow  the  same  to 
be  so  thinned  out  that,  in  the  opinion  of  the  assessor,  he  ought  no  longer 
to  receive  such  bounty,  he  shall  give  the  treasurer  written  notice  thereof, 
and  thereafter  no  further  bounty  shall  be  allowed  until  such  owner  shall 
again  receive  a  certificate  therefor." 


THE  TAXATION  OP  FOREST  LANDS  IN  WISCONSIN.  55 

have  the  value  of  the  tract  determined  in  advance  of  planting  by 
the  board  of  review  of  the  town  in  which  it  is  located.  If  the 
board  determines  the  average  value  of  the  tract  to  be  not  over  $10 
per  acre,  such  determination  shall  be  final  for  all  purposes  of  the 
act,  as  to  so  much  of  the  tract  as  shall  be  planted  in  accordance  with 
the  requirements  within  two  years  thereafter.  But  if  it  shall  de- 
termine such  value  to  be  more  than  $10,  the  owner  is  not  precluded 
from  making  an  application  for  another  valuation  of  the  tract  in  any 
subsequent  year.  When  a  tract  has  been  planted  under  the  provi- 
sions of  this  act  without  previous  determination  of  its  value,  the  al- 
lowance of  the  exemption  by  the  assessor  and  board  or  review,  or  by 
the  board  of  review,  shall  be  deemed  to  include  a  determination  by 
such  board  that  the  value  of  the  land  at  the  time  of  planting  did  not 
exceed  $10  per  acre,  and  shall  have  the  same  effect  as  if  made  before 
such  planting.  If  the  exemption  shall  be  disallowed,  the  action  of  the 
board  of  review  disallowing  the  same  may,  on  written  application  of 
the  claimant,  be  reviewed  by  the  State  Forester.  In  such  case  the 
claimant's  application  must  be  accompanied  by  an  undertaking  with 
one  or  more  sureties,  for  the  payment  of  the  expense  of  the  State 
Forester  in  making  such  review  in  case  the  exemption  claimed  shall  be 
disallowed  by  him.  His  determination  upon  written  approval  of  the 
State  Tax  commission  shall  be  final,  but  if  adverse  to  the  claimant 
it  shall  not  preclude  him  from  applying  for  like  exemption  in  any 
subsequent  year  upon  compliance  with  the  requirements  of  the  act. 

The  State  Forester  is  authorized,  upon  written  complaint  being 
filed  in  his  office  that  exemption  has  been  allowed  on  any  planta- 
tion which  has  not  been  established  or  maintained  in  conformity 
with  the  provisions  of  the  act,  to  determine  whether  the  facts  as  set 
forth  in  the  complaint  are  just  and  true.  If  they  are  found  to  be 
true  he  shall  cancel  such  exemption,  after  which  such  plantation 
or  so  much  thereof  as* is  not  so  established  and  maintained  shall  cease 
to  be  exempt  from  taxation  until  it  is  replanted  and  otherwise  brought 
within  the  conditions  of  the  act. 

The  right  to  exemption  shall  be  inviolable  and  irrevocable  as  a  con- 
tract obligation  of  the  state  so  long  as  the  owner  of  the  land  fully 
complies  with  the  requirements,  but  in  no  case  for  more  than  30  years. 


56  THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN. 


TAX  LAWS  IN  OTHER  STATES.* 

Twelve  of  the  states  have  enacted  various  tax  laws  to  encourage 
the  planting  and  cultivation  of  trees  and  the  practice  of  forestry. 
Under  these  laws  there  is  allowed  entire  or  partial  exemption  from 
taxation,  rebates  of  part  of  the  taxes  or  bounties  to  be  deducted 
from  the  taxes.  In  most  of  the  states  the  law  provides  for  complete 
exemption  from  taxes  on  land  and  trees  for  a  definite  period  of  time, 
ranging  from  five  to  thirty  years.  These  exemptions,  rebates  or 
bounties  are  generally  granted  to  owners  of  timberlands  in  considera- 
tion of  the  public  benefit  derived  from  the  planting,  cultivation  and 
growing  of  trees. 

None  of  the  laws  providing  for  exemptions,  rebates  or  bounties 
has  solved  the  problem  of  forest  taxation.  Practically  no  results 
have  been  obtained  under  them,  although  many  have  been  in  force 
for  years.  It  is  not  difficult  to  see  why  results  have  not  been  ob- 
tained, because  most  of  these  laws  are  impractical  from  a  forestry 
standpoint.  Almost  uniformly  they  apply  to  plantations  and  fail  to 
include  natural  reproduction.  In  some  of  them  the  required  number 
of  trees  to  be  planted  to  each  acre  is  too  large  or  the  planting  is 
restricted  to  certain  species  which  are  not  always  well  chosen,  or  else 
valuable  species  have  been  omitted.  The  proper  care  of  the  trees 
after  once  planted  is  often  interfered  with  by  requirements  of  the 
law.  Even  if  these  defects  were  not  present,  it  is  not  believed  that  the 
laws  would  be  productive  of  the  results  intended. 

PROBABLE   RETURNS   FROM   FOREST   INVESTMENTS. 

It  has  been  shown  that  the  burden  of  taxation  on  cut-over  land  is 
proportionately  much  greater  than  upon  timbered  land,  although  the 
actual  assessment  is,  of  course,  less.  Thus,  if  the  assessment  on  tim- 
bered land  is  $15  per  acre  and  the  actual  true  value  of  land  and 
timber  is  $30,  the  ratio  of  the  assessed  to  the  true  value  is  50  per 
cent.  If  on  the  other  hand,  the  land  is  cut-over  the  assessment  is 
perhaps  reduced  to  $6  per  acre,  but  if  the  land  is  only  worth  $3 
per  acre,  the  ratio  of  assessed  to  true  value  is  200  per  cent.  That 
few  objections  have  been  registered  in  the  past  to  this  state  of  af- 
fairs is  undoubtedly  due  to  the  fact  that  timberland  owners  have 


*  Taxation  of  Timber  Lands,  by  Fred  R.  Fairchild,  in  the  "Report  of  the 
National  Conservation  Commission,"  Vol.  II,  pages  584-589. 


THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN.  57 

not  considered  holding  their  cut-over  lands  for  a  second  cut. 
While  a  high  rate  of  assessment  on  cut-over  land  is,  of  course,  less 
of  a  burden  to  a  timberland  owner  than  a  high  rate  of  assessment 
on  timbered  land,  provided  he  owns  a  considerable  area  of  both 
classes,  it  is  still  an  increasing  burden  as  his  area  of  cut-over  land 
increases  with  the  cutting  of  timber.  If  the  owner  intends  to  hold 
his  cut-over  land  for  a  second  cut,  it  will  take  a  period  of  50  or  60 
years,  or  possibly  longer.  Such  a  burden  of  taxation  upon  the  land 
becomes  of  great  importance  and  may  result  not  only  in  a  loss  on 
his  investment,  but  also  may  amount  to  more  than  the  actual  value 
of  the  land  itself  long  before  the  rotation  period  is  up. 

Three  tables  have  been  prepared  to  show  what  the  probable  profit 
or  loss  will  be  at  given  periods  on  pine  timber  grown  under  both 
the  present  method  of  taxation,  and  the  method  proposed  later  in 
this  report  where  the  land  is  taxed  annually  and  the  timber  when 
it  is  cut.  In  the  absence  of  data  showing  the  yield  per  acre  of 
pine  in  Wisconsin,  it  was  necessary  to  use  yield  figures  based  upon 
growth  and  volume  studies  for  the  same  species  in  other  states. 
Stumpage  values  are,  of  course,  variable,  but  the  figures  used  in 
these  calculations  are  considered  conservative  if  applied  to  tracts 
not  over  three  to  five  miles  from  a  railroad,  and  they  are  especially 
-conservative  when  consideration  is  given  to  the  probable  rise  in  pine 
stumpage  during  the  next  fifty  years.  The  total  stumpage  value 
per  acre  is  expressed  in  the  column  headed  "returns." 

As  a  rule,  young  stands  of  timber  in  Wisconsin  are  not  now  con- 
sidered in  fixing  assessed  values.  It  is,  therefore,  assumed  that 
for  the  first  thirty  years  under  the  present  method  the  timber  is  ex- 
empt from  taxation.  The  land,  however,  for  that  period  is  taxed. 
Only  non-agricultural  land  was  considered,  and  its  value  assumed 
to  be  $2  per  acre  in  Tables  1  and  2,  and  $2.50  in  Table  3.  An  an- 
nual tax  rate  of  one  and  one-half  per  cent  on  full  valuation  is  used 
in  all  the  tables.  The  tax  burden  resulting  from  such  rate  on  full 
valuation  will  be  approximately  equivalent  to  the  present  tax  burden 
now  borne  by  timberlands  in  northern  Wisconsin.  The  tax  on  the 
yield  is  fixed  at  10  per  cent.  According  to  the  calculations  in  these 
tables,  this  is  the  highest  rate  which  could  reasonably  be  applied. 


58 


THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN. 


Possible  returns  from  forest  investments  in  natural  and  planted  stands  in    Wisconsin^ 

TABLE  1. 


g 

1 

2£ 
£v 

t** 

Stumpage 
perM. 

Returns. 

ii 

*L 

|H- 

Total  taxes 
present 
system. 

Total  taxes: 
deferred 
system. 

Total  ex- 
pense pre-;1 
sent  system  || 

Total  ex- 
pen  sedefer- 
,  red  system. 

Net  profitll 
present 
system. 

Net  profit 
deferred 
system. 

Net  annual 
income, 
present 
system. 

Net  annual 
income, 
deferred 
system  . 

t 

i 

I 

x* 

30 

2.0 

$5 

$10.00 

$5.61 

$1.68 

$2.68 

$7.29 

$8.29 

$2.71 

$1.71 

$0.048 

JO.  030 

40 

5.3 

6 

31.80 

9.50 

4.65 

6.03 

14.15 

15.53 

17.65 

16.27 

.    .186 

.171 

50 

8.0 

7 

56.00 

15.26 

13.00 

10.18 

28.26 

25.44 

27.74 

HO.  56 

.182 

.200 

60 

12.5 

9 

112.50 

23.80 

29.70 

18.39 

53.50 

42.19 

59.00 

70.31 

.248 

.295- 

70 

16.5 

10 

165.00 

36.43 

64.62 

27.43 

101.05 

63.86 

63.95 

101.14 

.176 

.278 

80 

20.0 

11 

220.00 

55.12 

125.78 

38.54 

180.90 

93.66 

39.10 

126.34 

.071 

.229 

90 

23.0 

12 

276.00 

82.80 

226.15 

52.44 

308.95 

135.24 

—32.95 

140.76 

—.040 

.170 

100 

26.0 

12 

312.00 

123.76 

384.82 

68.33 

508.58 

192.09 

-196.58 

119.91 

—  .159 

.097 

TABLE  2. 


30 

2.0 

$5 

$10.00 

$7.97 

SI.  99 

$2.99 

$9.96 

$10.96 

$.04 

$-.96 

$.001 

-$.014 

40 

5.3 

6 

31.  SO 

14.50 

5.51 

6.80 

20.01 

21.30 

11.79 

10.50 

.098 

.087 

50 

8.0 

7 

56.00 

25.12 

15.40 

11.88 

40.52 

37.00 

15.48 

19.00 

.074 

.091 

M 

12.5 

9 

112.50 

42.43 

36.04 

21.86 

78.47 

64.29 

34.03 

48.21 

.096 

.136 

70 

16.5 

10 

165.00 

70.62 

80.35 

34.16 

150.97 

104.78 

14.03 

60.22 

.024 

.102 

80 

20.0 

11 

220.00 

116.54 

162.44 

51.14 

278.98 

167.68 

-58.98 

52.32 

—  .061 

.054 

90 

23.0 

12 

276.00 

191.35 

306.49 

75.44 

497.84 

266.79 

-221.84 

9.21 

—  .139 

.006 

TABLE  3. 


Planting1, 

1 

protection, 

and  land. 

30 

3.7 

$5 

$18.50 

$35.39 

$2.49 

$4.34 

$37.88 

$39.73 

$-19.38 

-$21.23 

$-.292 

—  $.320 

40 

12.6 

6 

75.60 

59.86 

8.05 

12.09 

67.91 

71.95 

7.69 

3.65 

.064 

.030 

50 

21.0 

7 

147.00 

99.71 

27.92 

22.55 

127.63 

122.26 

19.37 

24.74 

.093 

.118 

60 

26.7 

9 

240.30 

16*.  62 

73.75 

37.29 

238.37 

201.91 

1.93 

38.39 

.005 

.109 

70 

31.0 

10 

310.00 

270.35 

163.01 

53.07 

436.36 

323.42 

-126.36 

—13.42 

—.215 

—.023 

80 

35.0 

11 

385.00 

442.55 

329.38 

74.92 

771.93 

517.47 

-386.93 

-1S2.47 

—.398 

—  .13« 

In  all  three  tables  the  tax  rate  is  li  per  cent  on  full  y  aluation. 

The  land  is  valued  at  $2  in  tables  1  and  2,  and  $2.50  in  table  3. 

The  rate  of  interest  used  is  4  per  cent  in  table  1.  and  5  per  cent  in  tables  2  and  3. 

The  cost  of  protection  assumed  is  2  cents  in  tables  1  and  2,  and  5  cents  in  table  3. 

The  cost  of  planting  in  table  3  is  $5.50  per  acre;  tables  1  and  2  have  natural  reproduction. 

—means  loss. 

0 

In  Table  1,  the  rate..-of  .interest  used  is  four  per  cent,  while  in 
Tables  2  and  3  it  is  five  per  cent.  The  annual  cost  of  protection  as- 
sumed is  two  cents  per  acre  in  Tables  1  and  2,  and  five  cents  per 
acre  in  Table  3.  Protection  at  an  annual  cost  of  two  cents  per  acre 
is  possible  only  where  large  holders  cooperate  in  protective  work. 
The  cost  of  planting  in  Table  3  is  $5.50  per  acre;  Tables  1  and  2 
represent  lands  having  natural  reproduction.  If  two-year-old  seed- 
lings are  used  $5.50  should  cover  the  cost  of  planting.  In  case 


THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN.  59 

three-year-old  transplant  stock  is  used  this  item  should  be  increased 
to  about  $8.75. 

Table  1  is  based  upon  a  four  per  cent  rate  of  interest,  but  since 
many  savings  banks  pay  as  high  as  four  per  cent,  such  rate  would 
undoubtedly  be  too  low  to  attract  private  capital.  Tables  2  and  3 
are  based  upon  a  five  per  cent  rate  of  interest.  Even  a  five  per  cent 
rate  is  considered  by  many  too  low  for  forest  investment,  consider- 
ing the  danger  from  fire  and  the  impossibility  of  securing  fire  insur- 
ance on  the  timber.  All  returns  above  the  five  per  cent  on  the  in- 
vestment in  Tables  2  and  3,  or  above  the  four  per  cent  in  Table  1 
are  considered  profits  and  expressed  both  as  net  profits  and  as  an 
equal  annual  profit  by  discounting  to  the  end  of  each  year  of  the 
rotation.  The  calculations  in  Tables  2  and  3  are  not  carried  out  for 
rotations  greater  than  90  and  80  years  respectively,  since  after  that 
period  the  investment  is  continuously  a  losing  proposition. 

Unlike  Tables  1  and  2,  Table  3  applies  only  to  planted  stands  of 
pine,  and  therefore  the  cost  of  planting  is  included  in  the  items  of 
expense.  Planting  enables  one  to  obtain  a  fully  stocked  stand,  and 
as  a  result,  plantation  yields  are  much  above  those  of  naturally  grown 
stands.  Growth  studies  for  pine  plantations  in  Wisconsin  have  not 
been  made  because  of  the  lack  of  such  plantations  in  the  state.  Studies 
of  this  kind,  however,  have  been  made  for  a  large  number  of  planta- 
tions in  Massachusetts,  and  separate  tables  have  been  constructed  that 
show  the  average  yields  per  acre  on  the  best,  medium,  and  poorest 
quality  of  sites.  The  sandy  $2  and  $2.50  land  in  Wisconsin,  however, 
probably  has  a  very  low  productivity  and,  therefore,  a  separate  yield 
table  which  should  apply  to  these  sandy  tracts  was  constructed  to 
amply  allow  not  only  for  a  smaller  yield  per  acre  but  also  for  a  less 
complete  utilization  of  small  sizes.  Since  so  large  a  part  of  the  yield 
of  SO  and  40  year  plantations  is  very  small  material,  only  50  per  cent 
of  the  yield  given  in  the  Massachusetts  tables  for  these  ages  was  used. 
It  is  believed,  therefore,  that  the  values  for  yield  are  very  conserva- 
tive. 

As  shown  by  these  tables,  the  taxes  on  natural  growth  stands  under 
the  present  system  constitute  a  very  large,  part  of  the  total  expense. 
In  Table  1,  where  four  per  cent  interest  is  used,  after  the  fiftieth  year 
they  are  greater  than  the  annual  expense  for  protection  and  the  in- 
terest on  the  land  together.  At  the  end  of  60  years  in  this  table,  which 
would  be  the  most  profitable  time  to  cut  the  timber,  the  owner  would 
have  paid,  per  acre,  $23.80  in  interest  on  the  investment  itself  and  in 


60  THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN. 

annual  protection,  and  $29.70  in  taxes  under  the  present  system  of 
taxation.  This  would  leave  him  a  net  profit  of  $59  under  the  present 
system,  or  under  the  deferred  system  where  the  total  amount  of  taxes 
would  amount  to  $18.39,  a  net  profit  of  $70.31.  It  must  be  remem- 
bered that  in  all  of  these  tables  the  owner  is  obtaining  interest  on  his 
investment  at  the  per  cent  indicated,  and  that  the  net  profit  is  over 
and  above  the  amount  of  interest  on  such  investment. 

In  Table  2  the  best  rotation  is  likewise  60  years,  and  in  this  case 
where  interest  has  been  figured  at  five  per  cent,  the  owner  will  have 
paid  at  the  end  of  60  years  $42.43  in  interest  on  the  investment  itself 
and  in  annual  protection,  and  $38.04  in  taxes  under  the  present  sys- 
tem. This  would  leave  him  a  net  profit  of  $34.03  under  the  present 
system,  or  under  the  deferred  system,  where  the  total  amount  of  taxes 
would  amount  to  $21.86  a  profit  of  $48.21.  These  are,  to  be  sure, 
small  profits  to  obtain  after  waiting  for.  so  long  a  period  as  60  years. 
In  the  first  case  at  four  per  cent  interest  it  amounts  to  an  annual  net 
profit  of  $.248  per  acre  under  the  present  system,  and  $.295  per  acre 
under  the  deferred  system.  In  Table  2  it  amounts  to  $.096  per  acre 
annual  profit  under  the  present  system,  and  $.136  per  acre  under  the 
deferred  system.  If  a  higher  tax  on  yield  under  the  deferred  system 
than  10  per  cent  is  used  the  profits  are  so  far  reduced  that  the  invest- 
ment is  no  longer  attractive. 

In  Table  3  the  initial  investment  includes  the  interest  on  the  land 
and  the  cost  of  planting  with  interest,  and  the  annual  cost  of  protec- 
tion at  5  cents  an  acre  a  year.  The  reason  for  the  increased  expense 
in  this  table  is  due  entirely  to  the  cost  of  planting  and  the  interest 
thereon.  Interest  on  the  entire  investment  is  figured  at  5  per  cent. 
This  table  indicates  that  the  most  profitable  time  to  cut  the  timber 
would  be  at  the  end  of  50  years,  although  in  fact  the  timber  might  be 
too  small  at  that  period  to  make  it  worth  while  cutting.  At  the  end 
of  50  years,  the  owner  would  have  paid  for  planting,  protection  and 
interest  on  these  two  items  and  on  the  cost  of  the  land  $99.71,  and  he 
would  have  paid  $27.92  in  taxes  under  the  present  system.  This  would 
give  him  a  net  profit  of  $19.37  under  the  present  system,  or  under 
the  deferred  system  where  the  total  amount  of  taxes  would  amount  to 
$22.55,  a  net  profit  of  $24.74. 

If  a  deferred  tax  on  the  yield  of  less  than  10  per  cent  is  used  it  is 
not  believed  that  the  income  from  taxation  would  be  sufficient  for  the 
needs  of  the  town  and  county,  while  if  a  greater  per  cent  than  10  per 


THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN.  61 

cent  is  used,  the  profit  to  the  owner  is  so  far  reduced  as  to  make  the 
investment  unattractive,  therefore,  10  per  cent  has  been  adopted.* 

CONCLUSIONS 

As  is  clearly  brought  out  in  the  preceding  tables,  the  present  method 
of  assessing  forest  lands  is  ridiculously  uneven  and  in  many  cases  un- 
fair to  the  timberland  owner.  That  it  is  not  unfair  to  the  timber- 
land  owner  in  every  case  is  no  fault  of  the  present  law,  but  is  due  to 
the  lax  administration  of  the  law  by  the  assessors.  While  considerable 
cut-over  land  has  been  abandoned  in  the  past  on  account  of  taxes, 
little  or  none  is  now  being  so  abandoned.  The  reason  for  this  is  not 
decrease  in  taxes,  because,  as  has  been  shown,  taxes  have  increased, 
but  the  increased  or  expectation  value  of  the  land  itself  for  agricul- 
ture. While  forests  have  in  some  cases  been  overtaxed,  leading  in  a 
few  cases  to  hastening  the  cut,  taxation  has  not  in  the  past  greatly 
influenced  logging  operations  in  Wisconsin.  But  the  fact  that  it  has 
had  little  influence  in  the  past  does  not  mean  that  it  will  not  have 
more  in  the  future.  The  great  increase  in  assessments  on  forest  land 
in  the  last  few  years  (as  shown  in  the  table  on  page  64),  coupled 
with  the  fact  that  assessments  are  still  increasing,  and,  more  than 
this,  with  the  fact  that  under  the  present  tax  law  they  can  still  in- 
crease, makes  it  inadvisable  at  present  for  a  private  owner  to  prac- 
tice forestry  on  his  lands.  In  such  a  long-term  investment  as  forestry 
a  private  owner  must  know  definitely  what  the  annual  charges  against 
his  business  will  be.  Under  the  present  system  he  has  no  means  of 
knowing  how  great  will  be  his  taxes  in  10,  15  or  20  years.  In  an  in- 
vestment covering  such  a  long  period  as  this,  50  or  more  years,  where 
fire  risk  also  has  to  be  considered,  it  is  important  to  know  exactly 
what  taxes  will  have  to  be  paid.  Tables  1,  2  and  3  on  page  91  show 
the  influence  taxes  have  on  such  an  investment.  Probably  nothing 
discourages  investments  more  than  uncertainty  as  to  future  costs. 
And  whatever  can  be  said  of  the  present  system  of  taxation,  there  can 
be  no  question  of  its  arbitrariness  and  uncertainty.  If  there  is  added 
to  risks  from  fire,  from  insects,  from  fluctuation  in  lumber  values  and 
other  hazards  of  forestry,  a  further  uncertainty  as  to  what  the  taxes 
are  going  to  be,  private  owners  can  not  be  blamed  for  some  hesitation 


*  For  an  exhaustive  discussion  of  the  rate  of  interest  to  be  used  in  the  cal- 
culations of  expectation  values,  see  Report  on  Taxation  of  Timberlands,  by 
Fred  R.  Fairchild,  in  the  Report  of  the  National  Conservation  Commission, 
Vol.  II,  pages  624-626. 


62  THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN. 

in  starting  on  an  investment  which  may  have  to  pay  taxes  for  50  or 
more  years  before  returns  can  be  realized.  And  the  timberland  owner 
can  not  safely  figure  on  the  continuance  of  the  present  lenient  admin- 
istration of  the  property  tax.  As  has  been  shown  in  this  report,  the 
tendency  is  toward  a  stricter  enforcement  of  the  law,  and  consequently 
higher  assessments. 

The  possibility  of  the  practice  of  forestry  by  private  owners  de- 
pends on  two  things — an  equitable  system  of  forest  taxation  and  pro- 
tection from  forest  fires. 

Admitting  that  the  evidence  gathered  in  connection  with  this  study 
shows  that,  on  the  whole,  owners  are  not  now  excessively  burdened 
by  the  taxes  on  their  standing  timber,  it  does  not  necessarily  follow 
that  the  present  method  of  taxing  this  class  of  property  is  satisfac- 
tory. We  have  seen  that  in  the  equal  administration  of  the  law  every 
rule  of  equality  and  uniformity  has  been -violated,  and  that  precision 
and  certainty  have  been  displaced  by  arbitrariness  and  uncertainty. 
Under  these  conditions  owners  can  not  manage  their  timber  in  accord- 
ance with  approved  methods  of  forestry  with  a  view  to  holding  for  a 
second  cut,  for  there  would  not  even  be  a  semblance  of  certainty  as 
to  what  the  tax  burden  of  future  years  would  be.  On  the  other  hand, 
if  the  present  tax  laws  were  strictly-  enforced,  thereby  enabling  an 
owner  to  determine  with  a  fair  approach  to  certainty  the  probable 
amount  of  taxes  he  would  have  to  pay  in  future  years,  the  burden 
would  appear  to  be  so  prohibitive  that  no  prudent  man  would  attempt 
as  an  investment  to  protect  and  care  for  the  young  growth  with  a 
view  to  obtaining  a  second  or  future  cut. 

In  the  past,  the  one  thing  that  probably  has  prevented  a  more  waste- 
ful cutting  than  has  actually  taken  place,  and  that  has  saved  much 
of  the  remaining  timber,  is  the  fact  that  the  lax  enforcement  of  the 
tax  laws  has  kept  the  burden  on  timber  at  a  minimum. 

The  evidence  presented  in  this  report  has  demonstrated  that  with 
respect  to  timbered  land  the  general  property  tax  is  administratively 
unworkable.  The  problem  of  forest  taxation  can  never  be  satisfac- 
torily worked  out  under  it  because  the  system  is  fundamentally  wrong. 
It  is  believed  that  nothing  short  of  a  complete  readjustment  of  the 
present  method  of  taxing  this  class  of  property  will  make  possible  an 
equitable  solution.  Growing  timber  is  so  essentially  different  from 
the  great  mass  of  real  property  that  it  deserves  different  treatment  in 
the  matter  of  taxation.  Especially  is  this  true  if  the  state  desires  to 
encourage  the  perpetuation  of  forest  growth  and  the  practice  of  for- 


THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN.  63 

estry  on  privately-owned  lands.  If  possible  the  adjustment  should  be 
so  made  as  to  promote  an  adherence  to  the  essential  principles  of  mod- 
ern forestry  among  timber  owners,  and  the  care  and  protection  by 
them  of  young  growth  both  before  and  after  the  removal  of  the  mature 
timber  in  order  that  the  land  may  be  held  for  a  second  or  future  cut 
without  making  it  necessary  to  resort  to  artificial  planting. 

It  should  be  said,  however,  that  it  is  not  believed  an  adjustment 
of  the  tax  laws,  no  matter  how  perfectly  worked  out  and  administered, 
will  alone  bring  about  the  practice  of  forestry,  except  in  a  limited 
way,  or  the  extensive  growing  of  timber  as  an  investment,  on  pri- 
vately-owned lands.  Taxation  is  only  one  of  several  important  fac- 
tor which  at  present  makes  the  growing  of  timber  commercially  un- 
profitable and  consequently  unattractive  to  investors  or  those  engaged 
in  the  timber  business.  The  fire  hazard,  the  length  of  time  before 
returns  on  the  investment  commence  to  come  in,  stumpage  values,  and 
many  other  less  important  considerations  are  factors  which  many  re- 
gard equally  as  deterrent  as  taxes.  While  this  may  be  true  to-day,  it 
may  not  be  true  to-morrow.  The  menace  from  fire  is  admittedly 
great,  but  the  time  must,  and  surely  will,  come  when  it  will  be  re- 
duced to  a  minimum  by  the  inauguration  of  more  effective  measures 
of  prevention  and  control  than  now  exist.  It  is  to  be  hoped  that  the 
ever-recurring  destruction  of  forest  growth  from  fire  will  bring  about 
the  strictest  possible  enforcement  of  the  fire  laws  now  on  the  statute 
books,  and  if  they  are  found  to  be  inadequate,  then  the  enactment  and 
enforcement  of  laws  which  will  reach  and  remedy  this  devastating 
evil.  Undoubtedly  much  can  also  be  done  along  educational  lines 
toward  correcting  this  evil.  With  few  exceptions  all  forest  fires  orig- 
inate from  some  agency  within  human  control,  and  it  is  therefore  rea- 
sonable to  believe  that  those  exercising  such  control  can  by  thorough 
and  systematic  instruction  be  trained  to  exercise  the  utmost  caution 
in  building  and  caring  for  fires  which  by  chance  are  likely  to  spread  to 
neighboring  timber. 

The  long  period  which  must  elapse  before  there  is  any  substantial 
return  on  the  investment  is,  of  course,  a  discouraging  feature. 
Whether  it  will  greatly  retard  the  commercial  growing  of  timber,  if 
all  other  conditions  are  favorable,  can  only  be  conjectured.  Undoubt- 
edly the  increase  in  stumpage  values  which  occurs  as  the  timber  sup- 
ply is  gradually  diminished  will  do  much  to  make  the  proposition  more 
-attractive  as  an  investment  than  it  appears  to  be  to-day. 

While  the  introduction  of  a  more  equitable  system  of  taxing  grow- 


64  THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN. 

ing  timber  might  not  in  itself  be  a  sufficient  inducement  to  cause 
private  owners  to  engage  extensively  in  the  growing  of  timber  com- 
mercially, it  would  undoubtedly  be  a  step  in  the  right  direction. 
That  such  an  innovation  would  help  immensely  to  stimulate  this  sort 
of  enterprise  and  make  it  much  more  profitable  and  attractive  than 
it  is  at  present  can  not  be  gainsaid.  The  change  must  come  sooner 
or  later  if  the  state  is  to  attempt  to  remedy  existing  conditions,  and 
there  is  no  apparent  reason  why  decisive  action  with  that  end  in  view  . 
should  not  be  taken  now.  The  remedy  can  not,  of  course,  affect  the 
past  or  to  any  great  extent  the  present,  but  must  necessarily  be  con- 
lined  to  the  future.  Its  aim  should  be  to  encourage  the  growing  and 
proper  management  of  new  forests.  And  although  a  change  for  the 
better  in  existing  conditions  may  do  much  to  promote  the  growing 
of  a  future  timber  supply  lay  private  capital,  it  is  firmly  believed  that 
if  the  supply  is  to  be  commensurate  with  the  local  needs  the  greatest 
part  of  the  burden  in  providing  it  must  and  will  rest  with  the  state. 

EECOMMENDATIONS. 

In  preceding  pages,  it  has  been  shown  that  the  present  method  of 
taxing  timber  is  fundamentally  wrong;  and  that  the  time  seems  ripe 
for  the  formulation  and  application  of  some  remedy.  The  next  ques- 
tion is,  what  remedies  may  be  regarded  as  feasible.  For  convenience 
of  discussion  the  proposed  solutions  are  divided  into  (1)  woodlots, 
limited  in  area,  and  (2)  private  forests,  without  any  limitation  as  to 
area. 

Woodlots. 

As  has  already  been  pointed  out,  this  state  along  with  many  others 
has  endeavored  by  means  of  bounties  and  total  exemption  from  taxes 
for  a  certain  period  of  time  to  encourage  the  growth,  by  planting  of 
tree  belts  and  woodlots  by  private  owners.  The  results  obtained  un- 
der these  laws  in  "Wisconsin  have  been  inconsequential.  Their  aim 
was  entirely  confined  to  the  encouragement  of  tree  planting  in  a 
limited  way,  and  failed  to  make  any  provision  whatever  for  the  en- 
couragement of  woodlots  naturally  grown.  The  tree  belt  law,  now  re- 
pealed, needs  no  further  comment  here.  The  law  passed  in  1907  is 
much  more  commendable  than  its  predecessor,  yet  it  is  not  satisfac- 
tory in  every  respect.  It  can  be  made  far  more  satisfactory  if  so  re- 
drafted as  to  include  the  main  features  enumerated  in  the  recommen- 
dations which  follow. 


THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN.  65 

In  order  to  encourage  the  maintenance  of  woodlots  by  private  own- 
ers and  the  practice  of  forestry  in  the  management  of  such  woodlots, 
the  enactment  of  legislation  along  the  following  lines  is  recommended: 

1.  The  owner  of  any  land  which  is  occupied  by  a  natural  or  planted 
growth  of  trees,  or  by  both,  may  apply  to  the  State  Board  of  Forestry, 
in  manner  and  form  to  be  prescribed  by  it,  to  have  such  land  sepa- 
rately classified  for  taxation,  but  in  no  case  shall  more  than  40  acre3 
owned  by  one  person  be  so  classified. 

2.  Each  application  for  such  classification  should  be  accompanied 
by  a  plat  and  description  of  the  land  and  such  other  information  as 
the  State  Board  of  Forestry  may  require. 

3.  As  soon  as  practicable  after  the  receipt  of  an  application,   the 
State  Board  of  Forestry  shall  cause  an  examination  to  be  made  of  the 
land  for  the  purpose  of  determining  whether  or  not  it  is  of  a  suitable 
character  to  be  so  classified. 

4.  If  the  decision  of  the  State  Board  of  Forestry  is  in  the  affirma- 
tive, it  shall  submit  to  the  owner  a  plan  for  the  future  management 
of  the  land  and  trees,  and  shall  certify  to  the  town  clerk  that  the  land 
has  been  separately  classified  for  taxation  in  accordance  with  the  pro- 
visions of  the  act. 

5.  So  long  as  the  land  so  classified  is  maintained  as  a  woodlot  and 
the  owner  faithfully  complies  with  all  provisions  of  the  act  and  in- 
structions of  the  State  Board  of  Forestry,  it  shall  be  assessed  at  not 
to  exceed  $10  per  acre  and  taxed  annually  on  that  basis.    In  fixing 
the  value  of  the  land  for  assessment  the  assessor  shall  in  no  case  take 
into  account  the  value  of  the  trees  growing  thereon. 

6.  When  the  owner  desires  to  cut  any  of  the  trees  he  shall  give  the 
State  Board  of  Forestry  at  least  thirty  days'  notice  prior  to  the  time 
he  desires  to  begin  cutting,  so  that  it  may  have  ample  opportunity 
to  make  an  examination  of  the  land  and  designate  for  the  owner  the 
kind  and  number  of  trees,  if  any,  most  suitable  to  be  cut  for  the  pur- 
pose for  which  they  are  desired.  The  cutting  and  removal  of  the  trees 
so  designated  to  be  in  accordance  with  the  instructions  of  the  State 
Board  of  Forestry. 

7.  After  such  trees  are  cut  and  before  their  removal  from  the  land, 
the  owner  shall  be  required  to  make  an  accurate  measurement  or 
count  of  all  of  them  or  of  their  products,  and  file  with  the  town  clerk 
a  true  and  accurate  return,  under  oath  or  affirmation,  of  such  meas- 
urement or  count  and  of  the  variety  and  value  of  the  material  so  cut. 

S.  Before  any  of  the  material  so  cut  is  removed  from  the  land  the 


66  THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN. 

owner  shall  pay  to  the  proper  county  officer  an  amount  equal  to  10 
per  cent  of  the  stumpage  value  of  the  timber,  provided,  however,  that 
any  material  which  is  actually  used  for  domestic  purposes  by  the 
owner  or  his  tenant  shall  not  be  subject  to  such  tax. 

9.  To  knowingly  file  a  false  return  as  to  the  quantity,  variety,  or 
value  of  the  material  cut,  or  failure  to  comply  with  the  provisions  of 
the  act  or  with  any  instruction  of  the  State  Board  of -Forestry,  shall 
be  deemed  sufficient  ground  for  canceling  the  certiilcate  separately 
classifying  the  land  for  taxation. 

The  aim  of  the  legislation  above  proposed  is  to  encourage  and  make 
it  profitable  for  the  small  owner,  especially  the  farmer  in  the  agricul- 
tural districts,  to  utilize  a  part  of  his  land  for  the  production  of  wood 
and  timber,  thereby  affording  him  a  ready  supply  of  wood  material 
for  domestic  use,  as  well  as  a  shelterbelt  for  his  other  land.  All  the 
necessary  administrative  details  have  not  been  covered  in  the  recom- 
mendations, the  purpose  being  to  point  out  the  essential  features  of 
any  tax  law  which  is  designed  to  encourage  the  growth  and  mainte- 
nance of  woodlots.  The  number  of  acres  owned  by  one  person  which 
may  be  separately  classified  for  taxation  is  limited  in  order  to  pre- 
vent an  owner  from  resorting  to  the  law  for  speculative  purposes.  It 
is  believed  that  the  amount  specified  will  be  sufficient  for  all  ordinary 
purposes.  "While  it  is  suggested  that  the  tax  which  is  to  be  paid  for 
all  timber  cut  and  sold  by  the  owner  shall  be  collected  by  the  local 
authorities,  it  is  riot  material,  except  from  the  standpoint  of  local 
revenue,  whether  this  suggestion  is  followed  or  not.  It  may  be  pre- 
ferable for  the  state  to  collect  such  tax  as  it  is  suggested  shall  be  done 
in  the  case  of  timber  cut  from  privately-owned  forests. 

Private  Forests  Without  Limitation  as  to  Area. 

In  the  northern  counties  there  is  a  great  area  of  essentially  forest 
soil,  land  which  will  probably  never  be  susceptible  of  any  use  other 
than  the  growing  of  timber.  In  order  to  encourage  the  owners  of  such 
land  to  hold  it  as  a  forest  property  and  to  apply  practical  forestry 
to  its  management,  the  enactment  of  legislation  that  will  include  the 
following  provisions  is  recommended: 

1.  That  any  laud  in  the  state  suitable  for  timber  growing  and  oc- 
cupied by  a  natural  or  planted  growth  of  trees,  or  both  combined, 
may  be  separately  classified  for  taxation  ;  and  that  when  so  classified 
the  land  and  the  wood  and  timber  thereon  shall  be  taxed  in  accordance 
with  the  plan  set  forth  in  paragraphs  5  and  6. 


THE  TAXATION  OP  FOREST  LANDS  IN  WISCONSIN.  67 

2.  That  the  determination  of  the  question  as  to  whether  or  not  any 
land  is  suitable  for  timber  growing  shall  rest  with  the  State  Board  of 
Forestry. 

3.  That  all  applications  to  have  land  so  classified  shall  be  made  to 
the  Stale  Board  of  Forestry,  in  manner  and  form  to  be  prescribed  by 
it,  and  shall  be  accompanied  by  a  description  and  plat  of  the  land  and 
such  other  information  as  said  Board  may  require. 

4.  That  if  the  decision  of  the  State  Board    of   Forestry    is   in    the 
affirmative,  it  shall  submit  to  the  owner  a  plan  for  the  future  manage- 
ment of  the  land  and  trees,  and  shall  certify  to  the  State  Tax  com- 
mission that  the  land  has  been  separately  classified  for  taxation  in  ac- 
cordance with  the  provisions  of  the  act. 

5.  That  when  so  classified  the  land  shall  be  separately  taxed   an- 
nually; that  in  making  the  assessment  the  land  shall  not  be  valued 
at  more  than  $1  per  acre ;  and  that  in  fixing  the  valuation  the  assessor 
shall  in  no  case  take  into  account  the  value  of  the  growing  timber. 

6.  That  whenever  any  timber  or  wood  is  cut  from  such  land  the 
owner  shall  be  required  to  pay  an  amount  equal  to  10  per  cent  of  the 
gross  value  on  the  stump  of  the  wood  and  timber  so  cut. 

7.  That  the  owner  be  required  before  the  timber  is  removed  from 
the  land  to  file  with  the  State  Tax  commission,  a  true  and  accurate  re- 
turn under  oath  or  affirmation  of  the  variety  and  gross  amount  and 
value  of  all  material  which  has  been  cut. 

8.  That  the  assessment  and  collection  of  such  tax  on  the  timber 
shall  be  in  the  absolute  control  of  the  state,  leaving  the  tax  on  the 
land  where  it  is  now. 

9.  That  the  management  of  lands  so  classified  under  the  act  shall 
be  subject  to  such  supervision  as  the  State  Board  of  Forestry  may 
deem  necessary  to  protect  the  public  interest,  and  to  insure  the  proper 
management  of  such  land  and  timber. 

10.  That  failure  on  the  part  of  the  owner  to  comply  with  any  pro- 
vision of  the  act  or  to  carry  out  any  instruction  of  the  State  Board 
of  Forestry  shall  be  sufficient  cause  to  cancel  the  certificate  separately 
classifying  the  lands  for  taxation. 

11.  That  where  a  certificate  separately  classifying  land  is  canceled 
for  either  of  the  causes  mentioned  in  the  preceding  paragraph,  the 
owner  of  the  land  covered  by  such  canceled  certificate  shall  be  re- 
quired to  pay  an  amount  equal  to  what  the  total  taxes  under  the  gen- 
eral property  tax  would  have  been  for  the  period  of  time  the  land  was 
so  separately  classified. 


68  THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN. 

12.  That  when  there  is  reason  to  believe  that  a  return  is  incorrect 
or  where  the  owner  has  failed  to  make  a  return,  the  State  Tax  com- 
mission may  require  from  the  owner  such  further  information  as  may 
be  deemed  necessary;  and  for  the  purpose  of  ascertaining  the  correct- 
ness of  such  return  or  for  the  purpose  of  making  a  return  where 
none  has  been  made  by  the  owner,  the  State  Tax  commission  shall  be 
authorized  to  designate  an  agent  to  examine  any  books  or  papers  bear- 
ing upon  the  matter  and  to  determine  the  actual  amount  and  gross 
stumpage  value  of  the  timber  cut,  which  determination  shall  be  the 
basis  for  fixing  the  amount  of  taxes  the  owner  shall  pay. 

Conditions  in  Wisconsin  indicate  that  a  tax  on  the  yield,  together 
with  a  nominal  annual  tax  on  the  land,  is  superior  to  any  of  the  vari- 
ous tax  laws  which  have  from  time  to  time  been  proposed.  It  would 
be  far  more  equitable,  however,  if  no  annual  tax  were  levied  on  the 
land,  or  if  levied,  to  allow  the  aggregate  amount  of  such  taxes  to- 
gether with  interest  to  be  deducted  from  the  tax  on  the  yield  when  it 
is  levied.  But  if  such  a  tax  were  not  collected  annually,  it  is  probable 
that  the  local  revenues  might  be  so  reduced  as  to  seriously  interfere 
with  the  fiscal  affairs  of  the  community.  It  is  not  recommended  that 
the  annual  tax  with  interest  be  deducted  from  the  yield  tax  at  the 
time  it  is  levied,  because  it  would  be  simpler,  administratively,  to 
offset  such  annual  tax  by  reducing  the  rate  of  the  yield  tax. 

The  maximum  value  at  which  land  shall  be  assessed  is  fixed  at  $1 
per  acre.  In  many  of  the  towns  cut-over  lands  are  now  assessed  at 
that  rate.  However,  in  others  the  rate  is  much  higher,  and  for  that 
reason  it  may  be  preferable  to  increase  the  maximum  value  to  $2  per 
acre.  The  self -assessment  feature  of  the  proposed  law  is  made  with  a 
view  of  lessening  the  cost  of  administration.  It  would  be  far  more 
desirable  for  the  state  authorities  to  check  in  every  instance  the  re- 
turn of  the  owner  for  the  purpose  of  verifying  the  amount  and  value 
of  the  material  cut,  and  it  is  recommended  that  this  be  done  if  the 
cost  of  such  verification  is  not  prohibitive. 

If  the  foregoing  plan  for  assessing  woodlots  and  private  forests  is 
adopted,  some  provision  should  be  made  for  returning  all  or  a  part 
of  the  revenues  collected  by  the  state  authorities  to  the  counties  and 
towns  entitled  thereto. 

What  the  State  Should  Do. 

Even  though  a  satisfactory  adjustment  is  made  of  the  tax  laws  so 
far  as  they  relate  to  timber,  it  is  none  too  certain  that  it  would  result 


THE  TAXATION  OP  FOREST  LANDS  IN  WISCONSIN.  69 

in  promoting  the  growth  of  timber  by  private  capital  on  a  very  ex- 
tensive scale.  Certainly  such  remedial  legislation  can  not  be  expected 
to  assure  the  future  generation  of  a  sufficient  timber  supply. 
AVhile  a  consideration  of  state  forest  reserves  may  be  somewhat  irrele- 
vant to  the  subject  of  forest  taxation,  it  nevertheless  deserves  mention 
here  because  it  is  believed  that  only  through  direct  state  action  cau 
there  be  a  reasonable  assurance  of  a  sufficient  supply  of  timber  in 
the  future.  The  state  has  already  made  a  splendid  start  in  the  estab- 
lishment of  forest  reserves,  and  it  is  to  be  hoped  their  extension  wiil 
be  rapidly  carried  forward.  There  are  extensive  tracts  of  land  in 
the  northern  part  of  the  state  that  are  essentially  forest  lands,  and 
it  is  feared  that  unless  the  state  takes  up  the  work  of  reforesting 
them  they  will  continue  as  they  are  now,  unproductive  wastes. 

Of  the  various  plans  which  might  be  adopted  for  the  acquirement 
of  these  lands  by  the  state,  the  simplest,  least  expensive,  and  most 
effective  method  will  be  for  the  state  to  purchase  them  in  the  open 
market.  The  present  plan  for  raising  money  with  which  to  purchase 
forest  reserve  land,  although  an  excellent  one,  has  its  limitations.  It 
will  hardly  furnish  all  the  funds  that  will  be  needed  if  the  state  is  to 
do  all  that  it  can  and  should  do  in  reclaiming  these  lands  from  their 
present  idleness.  By  all  means  the  state  should  immediately  provide  by 
appropriation  such  additional  funds  as  may  be  needed  in  carrying  for- 
ward this  important  work.  Not  only  should  waste  and  cut-over  lands 
be  purchased,  but  also  lands  chiefly  valuable  for  the  growing  of  timber 
which  contain  a  growth  of  young  or  partly  mature  trees.  The  pur- 
chase of  restocked  lands  would  make  it  possible  for  the  state  forest 
reserves  to  be  revenue  producers  practically  from  the  beginning. 

The  perpetuation  of  a  timber  supply  in  the  state  is  so  fundamen- 
tally important  to  the  general  welfare  of  the  people  as  to'make  it  neces- 
sary for  the  state  to  at  once  take  affirmative  action  along  the  lines  sug- 
gested, and  not  rely  to  any  great  extent  upon  private  enterprise.  At 
present  the  great  tracts  of  land  in  the  northern  part  of  the  state  that 
are  now  unproductive,  but  that  should  be  under  forest  cover,  can  be 
purchased  by  the  state  at  a  comparatively  low  figure.  The  longer  they 
remain  in  their  present  condition,  the  more  difficult  it  will  be  to  make 
them  productive  as  a  forest  property  because  the  fires  which  are  con- 
tinually running  over  them  are  gradually  but  surely  so  impoverishing 
the  soil  as  to  eventually  make  them  valueless  for  any  purpose. 


70  THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN. 


APPENDIX. 

Prof.  Fred.  R.  Fairchild,  Assistant  Professor  of  Political  Economy 
in  Yale  university,  has  probably  made  a  more  exhaustive  study  of 
forest  taxation  in  the  United  States  than  has  any  other  person.  Prof. 
Fairchild 's  views  on  the  subject  have  been  so  well  expressed  in  an 
article  published  in  the  Yale  Review  for  February,  1909,  that  the 
article  is  here  quoted  almost  in  full. 

THE  ECONOMIC  PROBLEM  OF  FOREST  TAXATION. 

The  American  general  property  tax  has  had  must  of  its  many 
shortcomings  thoroughly  exposed  by  this  time.  Recently,  however,  the 
discussion  of  forest  taxation  has  called  attention  to  a  serious  defect 
which  has  heretofore  attracted  little  notice.  The  defect  referred  to 
is  the  necessary  tendency  of  the  general  property  tax  to  place  an  ex- 
cessive burden  of  taxation  upon  invested  wealth  which  is  increasing 
in  value.  Suppose  a  man  invests  $10,000  in  a  perpetual  annuity  at 
5  per  cent.,  yielding  an  annual  income  of  $500.  Suppose  an  annual 
property  tax  of  1  per  cent,  is  imposed.  The  tax  will  take  $100,  or  20 
per  cent,  of  the  income,  each  year.  Suppose  now  another  man, 
having  $10,000,  puts  it  in  trust  for  14  years,  after  which  time,  the 
principal  having  doubled,  he  invests  it  in  a  perpetual  annuity  of 
$1,000  a  year.  Under  the  property  tax  he  is  taxed  $100  the  first  year, 
but  the  second  year,  his  capital  having  increased  to  $10,500,  he  pays  a 
tax  of  $105.  His  tax  increases  each  year  until  the  fourteenth,  after 
which  it  is  $200  a  year.  The  present  value  of  all  the  taxes  paid  by 
the  first  man  is  $2,000,  or  20  per  cent,  of  his  capital.  The  present 
value  of  all  the  taxes  paid  by  the  second  man  is  $3,428,  or  34  per  cent, 
of  his  capital.  That  is,  the  man  who  does  not  use  up  his  income,  but 
reinvests  it,  is  punished  by  an  excessive  tax.1 

Now  the  business  of  forestry  is  apt  to  be  like  the  investment  of  the 
second  man.  The  annual  growth  of  the  trees,  instead  of  being  taken 
each  year  as  income,  is  left  to  increase  the  capital  till  many  years  later 
when  the  timber  is  cut  and  the  income  accrues.  The  general  property 
tax  provides  for  the  assessment  of  all  wealth  (barring  certain  exemp- 
tions) at  its  full  market  value,  the  tax  being  then  determined  as  a  cer- 


i  This  criticism  of  the  general  property  tax  is  parallel  to  Prof.  Fisher's 
criticism  of  the  income  tax  when  savings  are  counted  as  income.  Cf.  The 
Nature  of  Capital  and  Income,  pp.  249-255. 


THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN.  71 

tain  fraction  of  the  assessed  valuation.  As  applied  to  timber  lands, 
this  means  the  annual  taxation,  at  their  actual  market  value,  of  land 
and  trees.  Strictly  enforced,  according  to  the  plain  letter  of  the  law, 
such  taxation  cannot  fail  to  put  an  excessive  burden  upon  for,est  in- 
vestments. *  *  * 

As  a  matter  of  fact,  forests  are  not  taxed  so  heavily  as  this  in  the 
United  States  to-day.  Indeed,  up  to  the  present  time,  it  is  not  prob- 
able that  forests  have  been  taxed  at  all  excessively  in  most  parts  of  the 
country.  It  is  true  that  in  certain  sections  there  is  some  evidence 
showing  excessive  taxation.  But  as  a  rule  this  does  not  seem  to  be  the 
case.  Timber  lands,  like  other  property  in  general,  are  as  a  rule  greatly 
undervalued  by  the  assessors.  The  assessment  of  timber  lands  is  prob- 
ably even  more  lenient  than  that  of  other  kinds  of  real  estate.  It  is 
only  recently  that  assessors  (to  say  nothing  of  the  owners  themselves) 
have  awakened  to  the  value  of  the  forests.  Underassessment  and  lax 
administration  of  the  law  thus  far  saved  the  forests  from  an  excessive 
burden  of  taxes.  Likewise  the  cry  that  taxation  is  causing  the  destruc- 
tion of  our  forests  and  preventing  the  practice  of  forestry,  of  which 
we  are  lately  hearing  so  much,  is  greatly  exaggerated,  to  say  the  least. 
On  these  questions  the  writer  has  collected  a  large  amount  of  evidence. 
For  the  present  paper,  however,  we  shall  have  to  be  content  with  the 
statement  of  conclusions  just  made. 

These  conclusions,  however,  are  no  mitigation  of  the  charge  against  the 
general  property  tax.  It  is  only  because  the  general  property  tax  has 
not  been  effectively  administered  that  it  has  not  yet  been  responsible 
for  more  serious  results.  It  is  only  because  the  American  lumbermen 
have  so  far  had  no  particular  desire  to  practice  forestry  that  our  tax 
system  is  not  yet  open  to  the  charge  of  preventing  the  practice  of  for- 
estry. So  far  we  have  been  exploiting  our  forests  with  little  regard  for 
the  future.  But  the  present  methods  cannot  last  much  longer.  Before 
long  we  shall  have  to  practice  forestry.  And  whenever  we  are  ready  to 
seriously  undertake  it,  we  shall  find  our  methods  of  taxation  a  heavy 
handicap. 

Tndeed,  it  is  safe  to  say  that  we  can  never  expect  to  see  the  general 
practice  of  forestry  by  private  owners  under  our  present  system  of 
taxation.  It  has  been  shown  that  the  general  property  tax,  strictly  en- 
forced, is  capable  of  taking  away  a  large  part  of  the  income  of  the  for- 
est. It  may  be  objected  that  in  practice  the  general  property  tax  is  not 
strictly  enforced.  Forests  are  actually  not  taxed  on  their  true  value, 
and  this  fact  would  have  been  recognized  in  the  examples  given  above. 


72  THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN. 

The  answer  is,  first,  that  it  has  already  been  recognized  by  using  a  tax 
rate  of  one  per  cent.,  which  is  equivalent  to  the  present  rate  on  true 
value;  and  second,  that  even  if  such  excessive  taxation  as  has  been  illus- 
trated is  not  likely  to  occur  in  all,  or  even  in  the  majority  of  cases, 
this  does  not  relieve  the  situation  very  much.  The  mere  chance  that  it 
may  occur  in  any  given  case  would  be  enough  to  frighten  the  investor. 
Nothing  more  effectually  discourages  investment  than  uncertainty  as  to 
future  costs.  And  whatever  may  be  said  of  our  present  system  of  taxa- 
tion, there  can  be  no  question  of  its  arbitrariness  and  uncertainty.  If 
to  all  the  other  risks  of  forestry,  we  add  uncertainty  as  to  what  the 
taxes  are  going  to  be,  we  cannot  blame  investors  for  hesitating  to  em- 
bark on  an  enterprise  which  may  have  to  pay  taxes  fifty  years  before 
the  returns  begin  to  come  in. 

Moreover,  the  investor  cannot  safely  base  his  calculations  on  the 
continuance  of  the  present  generally  lenient  administration  of  the  prop- 
erty tax.  In  many  parts  of  the  country  there  is  to-day  the  feeling  that 
timber  lands  are  not  paying  their  just  share  of  taxes,  and  the  tendency 
is  unmistakable  toward  a  stricter  enforcement  of  the  law  and  a  heavier 
burden  of  taxation  upon  timber  lands. 

There  has  been  a  feeling  for  a  long  time  that,  in  the  interest  of  for- 
estry, timber  lands  should  be  granted  some  relief  from  the  burdens  of 
the  general  property  tax.  This  feeling  has  found  expression  in  the  tax 
laws  of  many  of  our  states  in  the  way  of  certain  concessions  to  forest 
lands. 

The  important  laws  which  give  special  concessions  to  timber  lands  are 
of  three  kinds,  tax  exemptions,  rebates  of  part  of  the  taxes,  and  boun- 
ties deducted  from  taxes.  Such  laws  are  in  force  at  present  in  twelve 
states,  including  all  of  the  New  England  states.  The  commonest  form 
of  law  is  exemption  from  all  taxes  on  land  and  trees  for  a  certain  def- 
inite period  of  time,  ranging  from  five  to  thirty  years,  twenty  years 
being  perhaps  the  average.  Eebates  and  bounties  are  less  common. 
These  laws  apply  generally  only  to  plantations  and  sometimes  apply 
only  to  land  not  at  the  time  woodland  or  sproutland  or  containing  more 
than  a  certain  number  of  trees  per  acre.  The  exemption  may  begin 
either  immediately  after  the  land  is  planted  or  set  aside  for  tree  culti- 
vation, or  after  the  trees  have  attained  a  certain  age  or  a  certain  aver- 
age size.  These  statutes  generally  contain  various  requirements.  Us- 
ually the  number  of  trees  per  acre  is  specified  and  the  trees  must  be 
selected  from  a  list  of  specified  kinds.  Directions  regarding  the  care  of 
the  trees,  thinning,  and  so  forth,  are  frequently  contained  in  the  laws. 


THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN.  73 

In  some  states  the  statute,  of  which  the  new  Rhode  Island  law  is  an 
example,  provides  that  the  forest  must  be  managed  under  a  working 
plan  drawn  up  by  some  state  officer  or  board.  In  addition  to  the  laws 
of  the  general  character  just  described,  a  few  states  have  laws  providing 
for  bounties  or  prizes,  but  without  any  reference  to  taxation.  These 
laws  are  at  present  in  force  in  six  states.  However,  with  the  single  ex- 
ception of  Minnesota's  bounty  law,  these  laws  are  of  no  practical  im- 
portance and  require  no  discussion  here. 

None  of  these  schemes  of  exemptions,  rebates,  bounties,  and  prizes 
has  touched  the  real  problem  of  forest  taxation.  Obviously,  laws  giv- 
ing occasional  small  prizes  for  the  best  examples  of  tree  plantations, 
hedge  fences,  and  so  forth,  can  have  no  far-reaching  effects  on  the  bur- 
dens of  taxation.  The  same  is  true  of  the  bounty  laws  of  Illinois,  Kan- 
sas, and  Wyoming,  which  merely  permit  the  several  counties  to  grant 
small  bounties  for  a  few  years.  The  Minnesota  bounty  law  is  the  only 
one  that  has  produced  any  results.  Up  to  1906,  $440,000  has  been  spent 
by  the  state  for  this  purpose,  as  a  result  of  which  it  is  claimed  that  some 
50,000  acres  have  been  forested.5  If  this  result  has  indeed  been  accom- 
plished it  has  been  at  a  heavy  cost.  Evidently  we  shall  not  find  a  solu- 
tion to  the  problem  here. 

Something  more  might  perhaps  be  expected  of  those  laws  which  really 
give  some  abatement  of  the  burden  of  taxation  by  means  of  exemptions, 
rebates,  and  bounties.  Yet  here  also  we  find  that  practically  no  results 
of  importance  have  been  produced.  Massachusetts  has  had  an  exemp- 
tion law  in  force  since  1878.  A  legislative  committee  in  1906  reported 
that  this  law  "has  been  a  failure,  as  practically  no  planting  has  been 
done  under  it."0  One  of  the  members  of  the  committee  reports  that 
he  could  find  only  sixteen  acres  in  the  state  that  had  been  affected  by 
the  law  since  1878.7  With  regard  to  the  rebate  law  of  New  Hampshire, 
the  State  Forestry  commission  reports  that  "This  abatement  provision, 
although  three  years  old,  is  not  widely  known  among  land  owners,  and 
has  so  far  been  inoperative."8  In  Connecticut,  the  exemption  law  has 
likewise  been  ineffective.  Similar  reports  come  from  the  other  states 
where  these  schemes  have  been  in  operation  long  enough  to  have  pro- 
duced any  results.  The  conclusion  that  these  laws  have  produced  no 
important  results  is  confirmed  by  the  testimony  of  all  who  have  investi- 
gated the  subject. 


~'  Report  of  the  Massachusetts  Legislative  Committee  of  1905  to  Consider  the 
Laws  Relative  to  the  Taxation  of  Forest  Lands,  p.  10. 
c  Ibid.,  p.  17. 

'  Akerman,  Southern  Woodlands,  June,  1908,  p.   39. 
-s  New  Hampshire  Forestry  Commission,  Report  for  1905-6,  p.  204. 


74  THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN. 

This  lack  of  results  may  be  explained  in  part  by  certain  very  im- 
portant defects  in  these  laws.  In  the  first  place,  the  common  restric- 
tion of  the  tax  abatement  to  plantations,  and  the  further  restriction 
in  many  cases  to  land  other  than  woodland,  in  large  measure  destroy 
the  usefulness  of  the  laws  at  the  very  beginning.  The  chief  problem 
is  in  connection  with  not  the  planting  of  new  forests  on  agricultural  or 
other  land  but  the  protection  and  preservation  of  our  present  forests. 

Moreover,  the  regulations  regarding  planting,  thinning,  etc.,  are  not 
drawn  in  accordance  with  scientific  forestry  principles.  Often  the 
number  of  trees  required  per  acre  is  too  large.  When  the  planting 
is  restricted  to  certain  specified  kinds  of  trees,  the  list  is  not  always 
well  chosen,  valuable  species  being  often  omitted.  The  proper  thin- 
ning of  the  growing  forest  and  the  most  profitable  use  of  the  forest  are 
often  interfered  with  by  the  requirements  of  the  statutes. 

Again,  the  burden  of  the  tax  reduction  is  not  provided  for  or  not 
properly  placed.  The  justification  of  the  concession  to  the  timber 
owners  lies  in  the  advantage  to  the  state  in  general.  Yet  the  particular 
locality  in  which  the  land  is  located  is  called  upon  to  bear  the  whole  or 
the  principal  part  of  the  burden  of  a  diminished  revenue.  What  the 
timber  owner  gains  must  be  made  up  by  heavier  taxes  on  other  local 
property.  This  point  was  apparently  not  considered  at  all  in  framing 
the  laws.  Certain  local  assessors  have  taken  this  matter  into  their 
own  hands,  and  have  adopted  the  custom  of  adding  enough  to  the  as- 
sessment of  some  other  property  of  the  timber  owner  to  make  up  for 
the  reduced  taxes  on  his  timber  lands.9  In  this  way  they  protect  the 
local  revenue,  and  also  defeat  the  whole  purpose  of  the  law. 

The  actual  financial  consideration  in  these  laws  is  really  not  very 
great.  Generally,  the  exemption  is  limited  to  a  rather  short  period  of 
time,  after  which  the  land  and  trees  are  again  subject  to  the  general 
property  tax.  Moreover,  the  abatement  comes  in  the  years  when  the 
trees  are  small  and  when  the  taxes  would  not  be  very  heavy  anyway. 
The  remission  of  taxes  resulting  from  these  laws  is  small  when  com- 
pared with  the  expense  of  planting  trees  and  holding  them  to  maturity.1(> 

In  short,  these  laws  are  based  on  no  sound  principles  either  of  for- 
estry or  of  finance.  It  is  not  to  be  inferred,  however,  that  the  failure 
of  these  laws  to  produce  important  results  is  wholly  due  to  the  defects 
just  described.  It  is  very  doubtful  whether  any  law  of  this  character, 
no  matter  how  scientifically  drawn  and  administered,  short  of  a  cora- 


»  Elliott,  Forestry  and  Irrigation,  April,  1906,  p.  178. 
loFernow,  Forestry  Quarterly,  Feb.,  1904,  pp.  63-68 


THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN.  75 

plete  exemption  of  growing  timber,  can  have  any  great  influence  on 
forests  and  forestry. 

What  are  the  principles  on  which  a  scientific  system  of  forest  taxa- 
tion should  be  based?  It  may  be  assumed,  without  much  danger  of 
controversy,  that  taxation  should  be  apportioned  according  to  ability 
as  measured  by  income.  In  applying  this  principle,  taxes  may  be 
levied  either  on  the  actual  income  when  it  accrues  or  on  the  capital 
value  of -the  income.  If  the  rates  of  the  income  tax  and  the  capital  tax 
bear  the  proper  relation  to  each  other,  the  results  will  be  identical. 
For  example,  if  the  interest  rate  is  five  per  cent.,  an  income  tax  of 
twenty  per  cent,  is  equivalent  to  an  annual  capital  tax  of  one  per  cent., 
provided  the  business  is  earning  a  regular  annual  income. 

In  the  case  of  forests,  we  may  have  either  an  income  tax  on  the  yield 
whenever  any  timber  is  cut  or  a  capital  tax  on  the  "expectation  value " 
of  the  forest  based  upon  all  its  future  expected  incomes  and  expendi- 
tures. This  proposition  may  be  illustrated  by  the  following  examples : 
Suppose  that  a  forest  is  so  managed  as  to  yield  a  net  income  of  $150 
per  acre  sixty  years  from  today,  and  again  every  sixty  years  there- 
after, without  any  cost  for  planting.  If  interest  is  at  5  per  cent.,  a 
simple  calculation  will  show  that  the  present  expectation  value  of  the 
forest  is  $8.47  per  acre.  Suppose  it  is  desired  to  tax  this  forest  at  the 
rate  of  20  per  cent,  of  its  net  income.  This  may  be  accomplished 
either  by  a  tax  of  20  per  cent,  of  the  net  yield  whenever  it  occurs  or  by 
an  annual  tax  of  1  per  cent,  of  the  expectation  value.  The  first  would 
mean  a  tax  of  $30  paid  every  sixty  years,  when  the  timber  is  cut.  The 
second  would  mean  a  tax  of  Sy^  cents  paid  every  year.  The  present 
value  of  these  two  taxes — that  is,  $30  paid  sixty  years  from  date  and 
every  sixty  years  thereafter,  and  Sy2  cents  paid  every  year  beginning 
at  once — is  exactly  the  same. 

This  is  an  example  of  a  forest  managed  to  produce  a  sustained  peri- 
odic yield ;  that  is,  the  timber  is  cut  at  long  intervals,  the  forest  being 
renewed  after  each  cutting  so  as  to  produce  about  the  same  yield  after 
each  rotation  period  forever.  Forests  may  also  be  managed  so  as  to 
produce  a  sustained  annual  yield.  In  this  case  timber  is  cut  annually, 
about  the  same  amount  each  year,  and  the  forest  is  maintained  without 
deterioration  forever.  And  finally,  forests  may  not  be  managed  accord- 
ing to  any  system  of  forestry,  the  yield  being  purely  irregular. 

Obviously  the  tax  on  yield  when  cut  may  be  applied  to  any  forest, 
whatever  the  system  of  management,  or  even  where  no  systematic  man- 
agement is  employed.  This  method  simply  takes  a  certain  part  of  the 


76  THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN. 

yield  whenever  any  timber  is  cut.  On  the  other  hand  the  tax  on  ex- 
pectation value  is  more  complicated.  It  requires  the  calculation  of 
present  value  based  on  all  future  expected  incomes  and  expenses.  And 
in  the  case  of  the  forest  with  irregular  yield  it  is  impossible  to  apply 
this  method  at  all,  for  there  is  no  way  of  calculating  the  expectation 
value. 

A  most  important  factor  in  the  calculation  of  expectation  value  is 
the  rate  of  interest.  In  the  examples  given  so  far,  five  per  cent,  has 
been  assumed  as  the  rate  of  interest,  and  this  rate  has  served  as  well  as 
any  other  for  the  illustration  of  theoretical  principles.  The  selection 
of  this  particular  rate,  however,  has  not  been  meant  to  carry  with  it 
any  assumption  that  five  per  cent,  is  in  fact  the  correct  rate  at  which 
to  capitalize  forest  investments,  nor  that  the  selection  of  the  rate 
of  interest  is  a  matter  of  slight  importance.  It  is  really  of  the  most 
vital  importance;  indeed,  it  is  hardly  an  exaggeration  to  say  it  is  the 
crux  of  the  whole  theory  of  the  tax  on  expectation  value. 

To  show  the  importance  of  the  rate  of  interest,  it  may  be  sufficient  to 
remind  the  reader  that  if  in  the  example  given  above  the  rate  had  been 
four  per  cent,  instead  of  five,  the  annual  tax  would  have  been  sixteen 
cents  instead  of  eight  and  a  half  cents.  Under  other  kinds  of  forest 
management  the  tax  is  still  more  dependent  upon  the  rate  of  interest. 
When  we  consider  that  a  change  of  one  unit  in  the  rate  of  interest 
may  double  or  even  treble  the  amount  of  the  tax,  we  begin  to  realize 
that  if  our  tax  system  is  to  be  based  on  expectation  value  all  our  search 
after  an  equitable  tax  will  be  a  farce  unless  means  are  taken  to  cor- 
rectly determine  this  factor  of  the  problem. 

That  this  question  has  never  received  proper  investigation  is  evi- 
dent from  the  character  of  its  discussion  in  the  technical  works  on  for- 
estry. In  working  out  problems  of  expectation  value,  these  works  use 
rates  of  interest  which  are  almost  certainly  too  low,  if  forestry  is  to  be 
considered  on  a  commercial  basis.  For  example,  Endres  uses  three 
per  cent,  in  calculating  expectation  value.11  Schlich,  after  a  discus- 
sion covering  three  pages,  decides  on  two  and  a  half  per  cent,  basing 
his  decision  mainly  on  the  fact  that,  at  the  time  he  was  writing,  that 
was  the  rate  paid  by  British  consols.12  Fernow  argues  in  favor  of  a 
low  rate  of  interest,13  on  the  grounds  that  interest  rates  are  likely  to 
fall  in  the  future,  that  forests  will  generally  be  a  safe  investment,  and 


11  Endres,  Die  Besteuerung  aes  Waldes,  Forstwissenschaftliches  Centralblatt, 
Sept-Oct,  1899,  p.  496,  etc. 

12  Schlich,  Manual  of  Forestry,  Vol.  Ill    (third  edition),  pp.  113-116. 
is  Fernow,  Economics  of  Forestry,  pp.  214-215. 


THE  TAXATION  OP  FOREST  LANDS  IN  WISCONSIN.  77 

that  the  price  of  wood  is  likety  to  rise.  He  concludes  that,  since  trust 
companies  and  savings  banks  are  making  long  time  investments  at  three 
and  three  and  a  half  per  cent.,  we  may  safely  use  those  rates  or  even 
lower  ones  in  calculating  the  value  of  forest  investments.  In  an  ex- 
ample on  another  page,  however,  he  uses  five  per  cent.14 

These  examples  will  illustrate  the  reasoning  commonly  employed  on 
this  subject,  the  conclusion  being  that  forest  investments  should  be 
capitalized  at  a  relatively  low  rate  of  interest,  not  higher  than  two  and 
a  half  or  three  per  cent.  This  conclusion  may  possibly  be  valid  for  the 
settled  condition  of  forestry  which  prevails  in  certain  parts  of  Europe, 
though  even  this  is  open  to  question.  But  for  conditions  such  as  pre- 
vail in  America  such  reasoning  and  such  a  conclusion  cannot  be  ac- 
cepted. 

Instead  of  being  lower  than  the  ordinary  commercial  rate,  the  writer 
is  satisfied  that  the  rate  of  interest  for  forest  investments  should  be 
fully  as  high  as  for  ordinary  investments,  or  even  considerably  higher. 
Forestry  is  a  business  of  a  peculiar  character.  In  the  first  place  the 
risk  is  very  great.  The  danger  of  fire  is  so  great  that  no  insurance 
company  will  take  the  risk.  There  is  also  the  risk  of  injury  by  in- 
sects, wind,  etc.  These  risks  must  be  taken  account  of  in  the  rate  of 
interest,  and  it  will  require  more  than  a  slight  increase  in  the  rate  to 
fully  compensate  for  them.  To  put  forest  investments  on  a  par  with 
government  bonds  and  the  better  class  of  trust  company  and  savings 
bank  investments  is  absurd  under  present  American  conditions. 

But  the  circumstance  which  above  all  others  makes  forestry  a  busi- 
ness by  itself  is  the  very  long  period  which  must  generally  elapse  be- 
fore the  investment  begins  to  yield  an  income.  The  investment  of 
$1,000  in  a  perpetual  annuity  of  $30  or  $40  a  year  is  one  thing.  To 
put  capital  into  an  investment  from  which  no  income  is  to  be  expected 
for  fifty  or  sixty  or  even  one  hundred  years  (very  probably  not  till 
after  the  death  of  the  investor)  is  a  very  different  thing.  Innumerable 
investments  of  the  first  kind  are  being  made  every  day,  and  we  can 
determine  the  prevailing  rate  of  interest  by  a  glance  at  the  dealings  on 
the  stock  exchange.  Investments  of  the  second  kind  are  so  rare  that 
we  are  unable  to  say  from  actual  dealings  what  the  rate  should  be.  The 
comparison  of  future  with  present  goods,  on  which  rates  of  interest  de- 
pend, is  a  psychological  process,  and  is  influenced  by  a  multitude  of 
considerations.  One  of  the  most  important  of  these  is  the  remoteness 
of  the  future  good,  and  it  is  certain  that  the  rate  at  which  men  dis- 


Ibid.,  p.  251. 


78  THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN. 

count  future  events  tends  to  increase  with  the  remoteness  of  the  event. 
Many  a  man  who  is  satisfied  with  an  investment  which  yields  him 
three  or  four  per  cent,  at  once  would  not  consider  for  a  moment  an  in- 
vestment at  the  same  rate  whose  income  was  to  commence  sixty  years 
from  date.  It  is  safe  to  say  that,  other  things  being  equal,  men  will 
not  be  tempted  by  forest  investments,  unless  the  rate  of  interest  is 
considerably  higher  than  that  of  investments  whose  income  begins  at 
once.  It  is  clear  that  we  cannot  put  forestry  on  a  par  with  the  better 
investments  of  trust  companies  and  savings  banks. 

Even  a  brief  examination  will  show  the  weakness  of  some  of  the 
arguments  cited  above  in  favor  of  a  low  rate  of  interest.  The  assump- 
tion that  the  rate  of  interest  tends  to  fall  is  belied  by  recent  history. 
Schlich,  writing  in  1895,  based  his  rate  on  British  consols,  which  paid 
two  and  a  half  per  cent.,  and  he  has  made  no  change  in  this  paragraph 
in  his  third  edition,  published  in  1905.  But  today  British  consols 
yield  three  per  cent,  on  their  market  price,  and  French  and  German 
government  bonds  yield  even  higher  returns.  Fernow's  book  was  pub- 
lished in  1902,  yet  even  this  brief  time  has  seen  a  considerable  rise  in 
interest  rates,  and  many  a  savings  bank  today  is  paying  four  per  cent, 
to  depositors.  On  account  of  the  depreciation  of  our  monetary  stand- 
ard, resulting  from  the  great  production  of  gold,  interest  rates  have 
been  rising  for  the  past  decade,  and  the  same  influence  is  more  than 
likely  to  cause  a  further  rise  in  the  future.  So  far  as  the  future  of  the 
rate  of  interest  is  concerned,  the  effect  should  be  to  cause  a  higher 
rather  than  a  lower  rate  on  deferred  incomes. 

That  the  price  of  wood  is  likely  to  rise,  and  so  increase  the  profits 
of  forestry,  cannot  be  denied.  This  circumstance,  however,  should  not 
properly  enter  into  the  determinatoin  of  the  rate  of  interest.  It  should 
rather  be  taken  account  of  in  estimating  the  value  of  the  future  yield 
of  the  forest,  in  this  way  entering  into  the  determination  of  expectation 
value.  Any.  proper  estimate  of  the  value  of  future  yield  will  take  into 
account  the  probable  increase  in  the  price  of  timber.  This  factor  being 
thus  accounted  for,  there  is  no  reason  for  lowering  the  rate  of  interest 
on  its  account. 

We  may  conclude,  then,  that  as  compared  with  ordinary  investments, 
the  income  of  forestry  should  be  capitalized  at  a  relatively  high  rate  of 
interest.  Further  study  would  probably  show  that,  if  the  rate  of  five 
per  cent,  adopted  for  the  examples  above  is  not  the  correct  one,  it  errs 
in  being  too  low  rather  than  too  high.  This  question  must  be  care- 
fully considered  in  applying  a  tax  on  expectation  value. 


THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN.  79 

It  has  been  shown  that  in  theory  a  correct  system  of  forest  taxation 
may  be  applied  either  as  an  annual  tax  on  the  expectation  value  or  as 
a  tax  on  the  yield  when  cut.  The  choice  between  these  two  methods 
must  depend  largely  on  practical  considerations.  It  does  not  require 
an  extended  study  of  American  forest  conditions  to  convince  any  one 
that  the  tax  on  expectation  value  is  not  capable  of  general  application 
in  this  country.  This  method  of  taxation  depends  on  the  general  prac- 
tice of  forestry,  whereas  in  America  the  practice  of  forestry  is  a  rare 
exception.  The  calculation  of  expectation  value  requires  accurate 
yield  tables  for  the  different  species  of  trees,  different  kinds  of  soil, 
and  different  parts  of  the  country.  Such  tables  do  not  exist  for 
America,  and  only  the  smallest  beginning  has  been  made  toward  their 
construction.  Finally  this  method  of  taxation  can  not  be  applied  to 
forests  which  produce  an  irregular  yield.  Yet  nearly  all  the  forests 
in  the  United  States  are  of  this  kind. 

The  tax  on  yield,  however,  does  not  have  to  rest  its  claim  to  superi- 
ority on  these  negative  arguments  alone.  It  is  supported  also  by  some 
positive  considerations  of  the  utmost  importance.  We  have  seen  that 
the  crucial  point  in  the  determination  of  expectation  value  is  the  rate 
of  interest,  and  that  we  have  no  principles  which  can  guide  us  to  the 
•correct  rate  for  forest  investments.  Even  if  we  may  suppose  the  cor- 
rect rate  to  have  been  determined  at  any  particular  time,  there  is  no 
guarantee  that  it  will  long  remain  the  correct  rate.  Yet  taxes  for  fifty 
or  a  hundred  years  to  come  may  be  based  on  a  rate  fixed  today.  To 
determine  the  whole  burden  of  forest  taxation  in  any  such  arbitrary 
fashion  is  not  to  be  thought  of.  The  tax  on  yield  escapes  this  whole 
difficulty.  When  a  forest  is  taxed  on  its  yield  the  value  of  the  yield 
arid  the  value  of  the  tax  will  bear  the  same  relation  to  each  other  no 
matter  what  the  rate  of  interest,  since  both  are  always  discounted  at  the 
same  rate. 

Another  advantage  of  the  tax  on  yield  is  that  it  avoids  the  necessity 
of  estimating  future  prices  of  timber.  All  such  estimates  are  largely  a 
matter  of  more  or  less  skillful  guess  work,  and  this  circumstance  sub- 
jects calculations  of  expectation  value  to  a  wide  margin  of  error.  The 
objection  to  a  tax  system  based  so  largely  on  guess  work  is  obvious.  In 
the  case  of  the  tax  on  yield,  however,  this  matter  presents  no  difficulty. 
The  tax  is  a  certain  part  of  the  yield  at  the  time  it  is  cut,  and  any 
change  in  prices  affects  both  the  tax  and  the  yield  in  exactly  the  same 
way. 

A  third  reason  in  favor  of  the  tax  on  yield  is  that  it  eliminates  the 


80  THE  TAXATION  OF  FOREST  LANDS  IN  WISCONSIN. 

element  ol!  risk  from  the  tax  problem.  All  forest  investments  are  de- 
cidedly uncertain  on  account  of  the  risk  of  fire  and  other  losses.  In 
the  case  of  the  tax  on  expectation  value,  as  we  have  seen,  this  risk 
should  be  taken  into  account  in  determining  the  rate  of  interest.  But 
no  one  can  accurately  estimate  the  degree  of  risk,  and  even  if  this  were 
possible,  no  allowance  in  the  rate  of  interest  would  be  able  to  prevent 
serious  injustice  being  done  in  individual  cases.  A  forest  owner  may 
have  been  paying  taxes  for  fifty  years,  only  to  see  the  yield  at  last 
wiped  out  by  fire.  The  tax  on  expectation  value  would  also  act  as  a 
check  to  investments  in  forestry.  When  the  annual  taxes  are  a  sure 
thing,  while  the  yield  to  be  obtained  after  many  years  is  decidedly  un- 
certain, we  can  hardly  blame  the  investor  for  some  hesitation.  The 
tax  on  yield  would  of  course  not  remove  the  risk  from  forestry,  but  it 
would  take  the  risk  element  out  of  the  taxation  problem.  Taxes  being 
paid  only  when  the  timber  is  cut,  the  destruction  of  the  timber  would 
automatically  remit  the  taxes. 

Still  a  fourth  argument  in  favor  of  the  tax  on  yield  must  be  men- 
tioned. In  certain  cases  the  tax  on  expectation  value  might  lead  to  pre- 
mature cutting.  If  an  owner  became  financially  embarrassed,  so  that 
the  payment  of  his  annual  tax  became  a  matter  of  difficulty,  he  might 
be  led  to  cut  immature  timber  to  get  money  to  pay  his  taxes.  The  tax 
on  yield  would  not  have  this  influence. 

We  may  conclude  then  that  the  superiority  of  the  tax  on  yield  is 
established  beyond  question,  both  on  theoretical  and  practical  grounds. 

The  limits  of  this  paper  will  not  permit  the  discussion  of  practical 
problems  of  administration.  The  tax  on  yield  must  necessarily  en- 
counter a  good  many  practical  difficulties,  and  numerous  administrative 
problems  must  be  solved.  The  writer  is  of  the  opinion  that  these  diffi- 
culties and  problems  will  not  prove  serious  enough  to  prevent  the  suc- 
cessful application  of  the  principles  of  the  tax  on  yield.  The  adoption 
of  these  principles  would  mean  the  removal  of  one  obstacle  to  the  con- 
servation of  the  American  forests. 


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